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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Joe NYC who wrote (150873)	12/3/2001 6:43:02 PM
From: Elmer	Read Replies (2) \| Respond to of 186894

Inability on part of AMD to sell more. AMD has been demand limited for probably 12 months now. That was a possibility I posed a few posts back. You may not have gotten caught up. If this is the case then even when practically giving them away, AMD can only find a limited number of takers. What makes this case unlikely is Hector's own statement that AMD enjoyed a ~10% cost advantage over Intel. With their much smaller die it would seem AMD would enjoy more than a 50% cost advantage. Why doesn't it? Keeping in mind the much smaller Athlon die compared to P4, when you take the 27% yield Paul calculated, you come closer to the 10% cost advantage AMD themselves claimed. Even at 27% yield AMD should get more good die than P4. Paul estimated an average wafer has 236.5 AMD processors. 27% yield would produce ~64 GDPW. It is not far off generating a 10% cost advantage for AMD based on their likely estimate of P4 yield. Another piece of the puzzle fits in place. EP