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

To: Nukeit who wrote (14002)	10/15/2000 9:10:06 AM
From: dale_laroy	Read Replies (1) \| Respond to of 275872

This would seem to fit a hypothesized historical pattern, but in banking, not investment funds. I have heard conspiracy theories to the effect that, once a company (one rumor centered around IBM) gets large enough that its failure would be catastophic to the banking community, these banks would automatically blackball any company that posed a real threat to the vested interest. Perhaps, if the financial institutions are blackballing AMD, this means that they believe AMD has a real chance of bankrupting Intel should they be left to their own devices.

To: Nukeit who wrote (14002)	10/15/2000 11:14:05 AM
From: Dan3	Read Replies (2) \| Respond to of 275872

Re:punishing AMD for causing Intel so many problems. After all, if AMD wasn't so competitive Intel could do business as usual. Thereby maintaining .5,.4,.3 tril Market cap. The bright side is that the new clock speeds and prices make upgrades compelling for a market segment that would otherwise not be interested. If someone has a 300 to 500 MHZ system now and $1,200 to $1,600 systems are 700 to 866MHZ, there's little motivation to upgrade. But if systems in that price range are 1GHZ or faster, millions of additional buyers will enter the market. So AMD's recent move may make the overall "pie" bigger, as well as giving AMD a bigger slice of that pie. Purchasing a computer is partly practical and partly emotional. Seeing "Gigahertz" on computers in stores and magazine ads will likely generate excitement for this market and bring in additional buyers for the whole sector. And this affects corporate upgrades as well. That 333MHZ system sitting on someones desk looks perfectly adequate when upscale systems are at 866MHZ. But when the Buzz is about 1,200MHZ systems, that 333 starts to look like a potential productivity problem. Intel will have sharpen its prices quite a bit, but should still be able to move plenty of product, probably more units but lower profits than it would have had if it had the whole market to itself. Regards, Dan