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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: TechieGuy-alt who wrote (9254)	9/19/2000 7:32:20 PM
From: niceguy767	Respond to of 275872

TG-alt: The really significant fact is that AMD on relatively low (compared to volumes likely to be seen in Y2001) volumes of "spry Athys" is making huge profits...This point seems to be going over the heads of almost all of the analysts...AMD posted $1.21 (after tax...who'd have thunk, a year earlier, that AMD'd be paying tax in Q2 Y2000) on 1.8 million "spry Athys"...I stress the point that it appears that 1.8 million "spry Athys" contributed "hugely" to "huge" profits...Q3 is looking at 3.6 million "spry Athys" and Q4 is looking at 7.2 million "spry Athys"...What I'm saying is that even if microprocessor demand were to "fall off a cliff" as several analysts, incorrectly imho, have intimated, AMD has huge "margins" to work with that would buffer them in such an event...Alternatively, AMD is making "huge" profits on the "spry Athy" owing to its prisitne architecture almost since the first one was delivered to market...Don't know about anyone else here, but I've not come seen a product deliver "profit" from the getgo!!!

To: TechieGuy-alt who wrote (9254)	9/19/2000 7:41:42 PM
From: Charles R	Read Replies (1) \| Respond to of 275872

TG, <I disagree with this point. > <Shipping 1-2 quarters earlier or later is just a very small hiccup compared to a known good volume ramp from a brand new copper fab- something that we know now, and we did not 2 quarters ago> "Known good volume ramp" from Dresden has nothing to do with shortage of proper chipsets. By all indications Dresden was ready for production in Q4 1999 (and definitely no later than Q1 2000). The way I look at it the cause-effect relationship is quite the opposite - Dresden ramp was delayed by the lack of proper infrastructure. AMD didn't think it made sense to ramp Dresden until there is solid chipset support (read KX/KT133). Sounds to me like we are not even talking the same language. Chuck P.S.: In lieu of product pushouts due to absence of proper infrastructure, look for AMD to aggressively ramp flash at Fab25 to ensure good fab untilization.