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

To: Nazbuster who wrote (37799)	4/29/2001 7:16:28 PM
From: Bill Jackson	Read Replies (3) \| Respond to of 275872

MacRandy, Price wars hurt equals equally in their shares are equal. In price wars $$ are burned. If one has 75% share and the other 25% and costs and ASP are equal the bigger will burn $3 for every one the smaller one burns. This is also called a pssng contest. Intel has deeper pockets that AMD and thus has a bigger $$ bladder. Against this is the real fact that the P-4 costs more to make than the AThlon and so AMD can keep their price a little lower and still make $$ where Intel loses $$. A contest like this can have only one outcome...death for intel, unless they get the P-4 cost down to the same area as the AThlond. So for a year this price war will favor AMD and Intell will draw down cash in the hopes that the .13 P4 and their 64 bit toad whacker will beat AMDs .13 AThlon and the AMD toad whacker. In general it is a cusp and Intel can be hurled down and AMD elevated as their processors emerge and enter battle as it is far from certain that either will win. Bill

To: Nazbuster who wrote (37799)	4/29/2001 7:33:08 PM
From: combjelly	Respond to of 275872

"Intel's Competitive Edge Over AMD Underestimated " Of course, this article totally misses the point that Intel loses money on an ASP of around $150, while AMD is profitable at half that.

To: Nazbuster who wrote (37799)	4/29/2001 8:33:19 PM
From: brushwud	Respond to of 275872

The price war underway between Advanced Micro Devices (AMD) and Intel (INTC) will hurt AMD more than Intel. This makes AMD's shares the riskier investment proposition, even though they are trading at lower multiples than Intel's. If this price war leads to big dips in the companies' share prices, Intel could end up being the better buy. Yes, Intel could end up being a good Buy. In particular, if they achieve the 16-17% growth Craig Barrett speaks of they could reach last year's all-time high within five years. I usually say any company making money is worth more than any company not making money. But if Intel is prepared to lose money for more than one year, they might cripple AMD.