Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: AK2004 who wrote (46190)	7/5/2001 6:23:18 PM
From: Cory Gault	Read Replies (1) \| Respond to of 275872

Albert: What makes you think they gained marketshare?

To: AK2004 who wrote (46190)	7/5/2001 6:31:32 PM
From: Joey Smith	Read Replies (3) \| Respond to of 275872

Albert, re:is that amd did not loose but rather gained unit market share True AMD-ROID logic. You dont think Intel might have gained some share from the Transmeta's of the world... Joey AMD Plunges as Price War Takes Its Toll By Caroline Humer Senior Writer 7/5/01 5:45 PM ET Advanced Micro Devices (AMD:NYSE - news - commentary) plunged Thursday after it admitted for the first time that it is feeling the effects of a price war with giant chipmaker Intel (INTC:Nasdaq - news - commentary). Microprocessor manufacturer AMD said after the close of trading Thursday that it expects second-quarter earnings to be a fraction of what analysts had expected. AMD forecast earnings of 3 to 5 cents a share for the period ended July 1, far below the 27 cents a share that analysts had been expecting, according to Thomson Financial/First Call. The earnings shortfall came amid a 17% decline in sales from first-quarter levels. The company had said it expected sales to fall 10%. Outperforming AMD shares vs. Intel, before Thursday's news In addition to the problems with its main microprocessor business, AMD said that weak sales of flash memory also hit sales. Flash, which is used in cell phones and personal digital assistants, accounted for 35% of AMD's revenue in the first quarter. But both those end markets have seen demand dry up and companies that make cell phones and PDAs have had to issue financial warnings themselves. As demand has fallen, so too has pricing. Despite the declining revenue, AMD said that it had record unit sales of both its Athlon and Duron processors during the quarter. If Intel's June 7 midquarter financial forecast proves accurate, Intel is winning the price war with AMD. During that announcement and conference call, Intel stuck by its previous revenue forecasts, which called for a decline of a couple percent to $6.5 billion. Intel also said last month that it expects profit margins to be within expectations. After dropping $1.12 in regular trading Thursday, AMD dropped $4.64, or 16%, to $24 in after-hours trading on Island. AMD stock has been a strong performer recently, more than doubling during 2001 until Thursday. But worries over the price war have been looming for months. The price war between Intel and AMD began brewing in January, when Intel cut some microprocessor prices by as much as 40%. The dispute picked up speed in April, when the company launched its then-fastest Pentium chip, a 1.7-gigahertz Pentium 4, at $352, less than half what it would normally charge for a new Pentium. That seems to be working for Intel. Earlier this week, Mercury Research in Scottsdale, Ariz., said that Intel had picked up some lost market share during the second quarter