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

To: TGPTNDR who wrote (63388)	11/11/2001 9:13:10 AM
From: combjelly	Respond to of 275872

"RMBS -- What were they thinking?" Come on, that's a dumb question. There were two things in their mind when they decided on Rambus memory, both of which derived from their position as the major CPU supplier. The most palatable one is that memory bandwidth is becoming a bigger and bigger problem as time goes on. Going to wider and wider memory banks will drive costs up. Why not take the bull by the horns and establish a de facto standard to solve this problem? The less tasty answer is that since Rambus has a royalty on it, Intel could cut a deal to avoid those royalties by using their position to promote it. Once Rambus is the standard, the lack of royalties would make their costs cheaper and that would give them higher margins and a little extra room if they needed to drop prices to stomp an upstart. This was all part of the grand plan to take the whole market with Timna/PIII/Itanium. It didn't work out that way, but it would have been brilliant...

To: TGPTNDR who wrote (63388)	11/11/2001 11:53:23 AM
From: milan0	Read Replies (1) \| Respond to of 275872

TGPTNDR re: " between INTC and AMD we're headed into a massive overcapacity situation." and "But I'm not really optimistic about either companies stock price over the short term." I sure agree that INTC is overbuilding. But, I'm not certain about the stock price. A few posts after yours, in Message 16640084 Bill Jackson writes: "AMD may be very well positioned to make huige share gains in this transition period." [to 64 bitness] and I would generalize that, in this industry, as soon as a company has a relative advantage, it reaps huge profits. Up till recently, Intel had the lead with Mhz and performance. But, these days, it seems that Mhz is less desired. Even performance is not that important as comm bandwith is often the limiting factor. So, maybe, a small, cheap and cool running CPU will give the distinctive advantage in the coming years. And this distinction might just be the ticket to share price gains. Mike "Now off to breakfast and Thuja planting." Thuja planting? I'm off till tomorrow; I need to go outside also.