Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: f.simons who wrote (113428)	10/13/2000 1:58:27 PM
From: Eric K.	Respond to of 186894

Frank-- You are really being a total arse. Kash, chic, I, and several others were disappointed by the report and posted accordingly. The report was not "weak" as you assert, however. AMD had a 20% profit margin even with a $90 asp on processors. I would describe those margins as extremely impressive, and reflecting very favorably on AMD's cost structure. The explanation for the low asp-- the lack of an integrated graphics chipset forcing Durons to be at least partially discounted to keep system cost down at low price points-- is both plausible and temporary. This lack of chipsets was not exactly a surprise either, though it is, of course, AMD's fault. I believe it also explains the purging of at least one of the managers in the last few months. The report was disappointing due to the delay of SMP to 1H 2001, the delay of corporate penetration to 1H, 2001 and, as mentioned, the lack of a complete low-end solution. Then again, the stock is trading at about 10 times trailing earnings, the stock is 55% off its 52-week high, and the company maintains a substantial performance lead over a company thirty times it size. It also has many exciting initiatives, which although slightly behind schedule, are substantially more interesting than those of its competitors. -Eric

To: f.simons who wrote (113428)	10/13/2000 2:10:41 PM
From: Paul Engel	Read Replies (2) \| Respond to of 186894

Frank - Re: "It must be frustrating to be a Droid and see your stock down on a day when the NAS and Dow are both up 150." Couple that with Intel being UP over $3 today after being UP $1 3/4 yesterday and you've got AMDigestion ! Re: "There is record-breaking denial over on the muzzled thread about AMD's earnings report. The report was weak, and there are a lot of warning signs everywhere about AMD. Most of the people over there just refuse to see the problems. And they can't even use the old excuse that Intel has dragged AMD down the last two days." Realistically, AMD had a good quarter and presented a reasonalbe Q4 2000 scenario - but spelled out some real concerns (Dupalon chip sets, etc.). I think what may be the BIG NEGATIVE was the admitted (albeit LOK KEY) delay in AMD's Muskrat and their "DOGGONE-PONY" show - PaloPinto and deMorgan, etc. AMD's run of execellent execution right now seems confined just to the AthWiper - and Intel's upcoming Pentium 4 may BOX AMD out of the high end - while Intel's superb Celeron and Pentium III infrastructure (i810, i810E and i815E chip sets & MotherBoards) will squeeze AMD at the low and mid-range price points. Intel's screw ups have given AMD a golden opportunity - but now, AMD's screwups are negating those advantages - and AMD now has a big exposure to a more competitive Intel. Paul