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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: milo_morai who wrote (113262)	10/12/2000 2:09:15 PM
From: Paul Engel	Respond to of 186894

Milo Mindbender - AMD Slips From Early Highs on Mixed Reviews dailynews.yahoo.com Thursday October 12 1:37 PM ET AMD Slips From Early Highs on Mixed Reviews By Timna Tanners LOS ANGELES (Reuters) - Shares of semiconductor maker Advanced Micro Devices Inc. (NYSE:AMD - news) slipped from early gains by mid-afternoon in heavy trading on Thursday, as financial analysts gave mixed reviews to its third quarter earnings report. AMD was up 3/8, to $22-1/8, on the New York Stock Exchange (news - web sites), after opening at $24-1/4, up $2-1/2 from its Wednesday close at $21-3/4, based on a better-than-expected earnings report. The Sunnyvale, Calif.-based company reported net income of $219.3 million, or 64 cents a share, compared with an operating loss of $99 million, or a 36-cent loss a share a year ago. The earnings beat analyst consensus forecasts of 62 cents a share, according to First Call/Thomson Financial. But some industry analysts lowered price and earnings estimates, pointing to lower-than-expected average chip selling prices and chipset supplies problems. Prudential Securities analyst Hans Mosesmann, who has a hold recommendation on the stock, cut his 12-month price target to $25 from $30 and trimmed his 2001 earnings per share estimate to $2.30 from $2.65. ``We believe it will be tough for AMD to sell all of the 7.2 million Athlon/Duron processors it will produce in the fourth quarter,'' he wrote in a report. ``The challenge for AMD in 2001 is correcting the infrastructure problem, which is hindering its ability to ship Athlon/Duron processors.'' He said revenues for the third quarter, of $1.21 billion, were lower than his estimates. Lehman Brothers analyst Dan Niles also cut his price target on AMD, citing an aggressive pricing environment. Other analysts had a more positive outlook for AMD, however, predicting solid demand and that supply issues would be a short-term problem that would self-correct. Company executives noted in a conference call it would be ``hard-pressed to meet demand.'' ``Management claims the microprocessor shipment unit is going to be constrained by chipset availability from its partners,'' Needham & Co. Inc. analyst Dan Scovel said. ``We're not convinced it will be as bad as they say, and even if it is, if fixes itself in the next quarter.'' Scovel cut estimates for the fourth quarter, but maintained a strong buy rating on AMD. He noted that the stock's price has already fallen in recent weeks by association with earnings warnings by other chipmakers. In the microprocessor market, AMD is a chief competitor with Intel Corp. (NasdaqNM:INTC - news), which warned last month that third-quarter revenue would fall below forecasts because of weak demand for its microprocessors in Europe.