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Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: Dave B who wrote (73004)	5/15/2001 11:26:38 PM
From: Scumbria	Read Replies (1) \| Respond to of 93625

Dave, If Intel continues the fight, AMD will probably go into negative profitability in the next quarter or two. You are quite a comedian. Scumbria

To: Dave B who wrote (73004)	5/16/2001 8:06:38 AM
From: SBHX	Read Replies (2) \| Respond to of 93625

Dave, Intel can last much longer in a protracted war than AMD can. AMD can't afford to undergo a long, continual battle. Here's a view on the amd-intc price war. vision.yahoo.com I think the market already understands that intc and amd are already in a price war. The analyst points out the following : 1. AMD's athlon chips have smaller die size hence lower cost than P4. 2. INTC predicted P4 sales in this quarter of 3M. Actual sales is 1M. To compound their problems, the ASP of P4 has been lowered much faster than anyone expected to address this. 3. INTC has not had to be competitive for a long time. 4. INTC has a giant mkt share of the PC pie and there is no easy new market to grow in. Home networking and consumer electronics are targets, but the current revenue base is enormous. My own take on this. I think INTC's strength are : 1. Its depth of engineering talent and the customer preference for Intel Inside logo. 2. You are right that they are much bigger and can weather a full out price war than AMD even if they have more to lose per chip, but there is (still) a price premium for INTC because of consumer perception, so they may not have to cut as much. I think their weaknesses are : 1. They are very big and not all their engineering talent are of the same high calibre. My initial impression is that the initial ia64 (Itanic) team is their B-team of engineers and it appears to be correct. 2. Their questionable execution recently. See slot1, i820. 3. Their questionable corporate direction to support proprietary to semi-proprietary technologies to consolidate their hold has done little to advance innovation. This includes the slot1, SSE, new AGP (3GIO), and (you won't like this) Rambus. I think AMD's main strength is that they've been hungry for a long long time. A hungry talented engineering team can do wonders in terms of innovation. AMD's main weakness is possibly stability of their chips as hungry engineering teams tends to pay less heed to testing and process flow and hence may introduce buggy chips earlier. Rightly or wrongly, INTC's existing problems started around their support of RMBS technology. Is this just a coincidence or is there a cause or effect at play here? Did Rambus technology have a role in bringing down a notch what was arguably the most powerful engineering company in the world? At some point, it will all come out. Now, we can only speculate. SbH