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

To: Rob S. who wrote (13692)	10/13/2000 1:09:23 PM
From: niceguy767	Read Replies (1) \| Respond to of 275872

Rob S. "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. 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." Comment: AMD's targets of 3.6 and 7.2 million "spry Athys" for Q3 and Q4 respectively are pretty formidable "new product" targets particularly inasmuch as the Q4 target, when reached, will set a record for units shipped in any quarter...Once again, evidence of an exemplary "new product" (i.e. K7) launch, imho. That there were infrastructure problems along the way during this phase of K7 exponential growth apparently precluded AMD from maximizing K7 prices...Q4 is likely to see a much smaller dampening effect in Q4 caused by infrastructure problems although aggressive pricing will probably still be required in ordsr to achieve the 7.6 million target...Once AMD has achieved quarterly K7 shipments of 90%, one can expect pricing to firm or increase (can't resist it...perhaps increase dramatically given any price/performance gap)...and all that is without workstation and server inroads, which only sweeten the mix when they occur... AMD is doing its thing...by delivering record earnings and revenues for 4 successive quarters, and by all indications, will continue to deliver this level of outstanding performance throughout Y2001...The market is doing its thing...by waxing and waning (albeit, imho, waning way beyond any reasonable limit), and by all indications, will continue wax and wane, taking AMD with it, for no AMD-specific reason...Just the nature of the beast, I guess!!!