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

To: niceguy767 who wrote (13670)	10/13/2000 9:40:01 AM
From: Neil Booth	Read Replies (2) \| Respond to of 275872

AMD wants to increase the 1 gig plus percentage of its mix as fast as possible as that's the range in which competition is minimal at the moment... Well, it's only competing with itself. That's my point. Neil.

To: niceguy767 who wrote (13670)	10/13/2000 12:11:11 PM
From: Rob S.	Read Replies (1) \| Respond to of 275872

The criticism of analysts is that AMD has a history of treating uP sales as commodities - coming at sales from the perspective of production rather than selling toward the high-end markets such as the corporate market. Analysts were surprised to see an erosion of ASPs at a time when Intel is floundering in the GHz race. AMD has also disappointed in the related area of OEM penetration into the corporate market. Sanders could not name a single top tier OEM for corporate penetration and admitted tha they are months behind in their targets for that market. Delays in dual processor systems, (once expected by early summer), has subjected AMD to the possibility that erosion in prices will take hold as production capacity fulfills demand going forward. AMD needs to shift their focus from capturing a foothold in the desktop space toward a full court press with the server and corporate workstation markets. They have the best system architecture at this time imo but they are not emphasizing this area sufficiently to forge a firm beach head. The move into the high-end systems business has great potential for AMD; high margins, less sensitive ASPs, and a huge new market to expand into. Can AMD pull it all together to enter this market or are they too much of a commodity chip marketing mentality? So much to gain and so much (potential and share price) to lose. AMD is highly disrespected among some influential analysts following this sector. The positives are better than expected bottom line results, ramping production capacity and popular parts for commodity markets. The negatives are fears that ASPs will decline and AMD will have no where to turn to maintain sales and profits. Recent history and AMD's protests that they are not about to stage a price war are being discounted in favor of AMD's history during times when supply met or exceeeded demand. The most positive thing is that AMD is cheap and we are at a turning point in the market for tech stocks. Not everyone agrees with the bulls about AMD but buying presure is likely to overcome selling pressure to move the stock higher. During the first stage of market recoveries, "darling" sectors and stocks typically move up first and to a greater extent. Follwing that, the market often turns attention to beaten down out of favor stocks and value growth plays. I suspect that AMD is in the latter group.