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

To: niceguy767 who wrote (13902)	10/14/2000 2:36:23 PM
From: f.simons	Read Replies (3) \| Respond to of 275872

Niceguy-Below is an exchange with Scumbria over on the Intel thread. I have offered possible explanations for AMD's disappointing share price to you on prior occasions, and they have met with ridicule and incredulity. I don't expect this to be any different. I am not trying to give anyone a hard time. You keep asking for reasons why AMD is experiencing the doldrums, and I keep seeing reasons you refuse to consider. So be it. Frank Scumbria- Scumbria: Didn't AMD just complete the best 4 consecutive quarters in their history? FS: Yes. S: They must be doing something right. FS: They are doing a lot of things right. S: They are up over 100% for the last 12 months. INTC is flat for the same period FS:AMD was up 700% at one point. So AMD is down 600% of it's EOY 1999 to its 2000 high. Intel was up to 75 at its high for 2000 and is currently off less than 50% of its 2000 gain. Proving once again that you can prove anything if you pick your time frame. S: AMD is blowing past Intel in manufacturing affordable, high speed CPU's. FS: I notice you didn't include "profitable" or "margins" in your description and AMD's ASP last quarter are probably the reason. Look, AMD is a very different company than it was a year ago, and credit should be given for that. I think that the problems AMD is currently experiencing in its share price has to go with a lot bigger perception problem than has been talked about a lot, but which weighs heavily on investors, including the all-important institutional investors. And that is that I don't think most rational people have a hard time seeing the future out to many years out as including Intel. But can you say the same for AMD? Intel catches a lot of flak on the AMD threads for investing in so many non-core companies. But the perception is that Intel is going to own a big chunk of the future, even if not all its investments contribute to Intel's bottom line right away. Even if a lot of them never do. Can you honestly say the same for perceptions regarding AMD? What happens when CPUs become commoditized, a result that AMD is striving mightily to achieve. What happens when AMD makes a 15 Mhz chip, and nobody needs it? What comes next? If AMD has a plan for the future besides making faster and faster CPUs and selling them for less and less money, we haven't seen it. Sorry for the rant, but those looking for a reason for AMD's share price woes might start by looking beyond simple Mhz considerations. Investors are. Frank