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

To: fyodor_ who wrote (18491)	11/10/2000 7:21:52 AM
From: niceguy767	Respond to of 275872

fyodor: "That's just it: The share of high-end chips will FALL as Durons are (finally) ramped. And due to infrastructure issues, not only is this ramp late, the processors have to be discounted [to account for high motherboard prices]." Prior to now, AMD has been competitive only in the low range with ASP's averaging around $50 one year ago. Over the past year, AMD has become competitive across all ranges raising its ASP to $90. As this trend continues and as the market grows accustomed to the idea of not only an INTC competitor in across all ranges, but an INTC competitor with a superior product at across all ranges, demand for AMD microprocessors will continue to surge until the demand curve crosses the supply curve, probably in Q1, at which time AMD ASP's will continue to gravitate upward towards those higher ASP's provided by the competitor...With the K6 transition complete, AMD'll be hard pressed to keep ASP's below $100 in Y2001, imho, especially when considering the 50% to 100% premium charged by the competitor for a similarly performing microprocessor...