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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Björn who wrote (123603)	9/7/2000 10:04:33 PM
From: niceguy767	Read Replies (1) \| Respond to of 1571198

barjo: you're missing the point...AMD is currently experiencing flash capacity constraint and within a very short time frame, will experience the same capacity constraint in microprocessors given a 500 MHz gap when they come to market at 1.5 gig Athys in January...AMD owns the top end in both flash and microprocessors and, with Duron is soon to own the low and mid microprocessor ranges...Demand for AMD products for the foreseeable future will outstrip AMD's capacity to produce given the dearth of competition...AMD is at the point in their growth curve where they can't bring on additional capacity fast enough...This additional source of capital that has been divulgeds today will help AMDm do so...As we have witnessed over the past year, AMD's gross margins on their leading edge flash and microprocessor product lines are outstanding...AMD can't produce Athys fast enough right now...and AMD's Athy is only on the "trendsetting" (i.e initial stages) portion of the marketing curve at the moment...The Athy explosion has not yet occurred, but I'll bet the signs are obvious to AMD management right now that this Athy explosion will occur within the next 12 months and that this explosion will utilize any and all the capacity that Dresden and Austin combined can utilize...More fab space is required now...more flash (sold out for as far as the eye can see) and more microprocessor (no meaningful competition for the Athy in sight)fab space required ASAP...My, oh my, how AMD fortunes have changed over the past year... Once again...if there are 2 markets in which you could produce leading edge products, what more potentially lucrative markets exist than flash and microprocessor???AMD products in both of these exploding markets are the highest of quality (therefore can demand premium pricing)...I just can't stress enough the importance that AMD owns the top end (i.e. high margin) segments in both these exploding markets!!!

To: Björn who wrote (123603)	9/7/2000 10:35:20 PM
From: brushwud	Respond to of 1571198

If you want to own a really small percent of a really large company I can recommend Intel. Even though AMD grows faster now in terms of absolute market cap, I will see my portfolio, with a smaller share of the cake, grow with a less percentage rate than before. There are two modes in business: growth & liquidation. Selling stock is in the growth mode. Stock repurchases are in the liquidation mode. If you want to own a company which is steadily repurchasing its own shares, I can recommend Intel. The first half-gigabuck of AMD's registration has already been sitting on the shelf for a while. The shelf registration doesn't mean they'll sell it today or tomorrow, or at today's price.