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

To: Dan3 who wrote (71282)	2/9/2002 1:50:10 PM
From: niceguy767	Read Replies (1) \| Respond to of 275872

Dan3: INTC's net Income declined from $10.5 billion in FY00 to $1.3 billion in FY01, an incredible $9.2 billion NI decline in one year in its attempt to get the p4 off the ground...INTC's shareholders better hope Elmer's promised floods of NW's not only appear soon but can find a home as INTC has staked the company's future on the p4 outcome... The problem facing INTC now is that the $9.2 billion decline in NI last year has just about emptied the "marketing" coffers and p4 is now going to have to go it alone on price/performance(INTC can't afford to throw such heavy marketing dollars at p4 in FY02)...Also, as mentioned previously, it appears that the massive FY01 p4 marketing efforts have absorbed almost all the margin room offered by Dell, InTC's subisiary (???)...Just not a whole lot of "wiggle" room left for the INTC/Dell dual monopoly??? Conclusion: INTC "risk" is currently higher than at any time in their past 15 years...INTC has staked INTC's future on the successful evolution of the p4 architecture...Problem is, based upon FY01, it is far from clear that p4 can successfully withstand the weight of the challenge it has been asked to carry, particularly in light of the XP's phenomenal acceptance and the Hammer threat that is looming on the horizon...If p4's uncompelling features were INTC's only problem, INTC might scrape by, but now AMD is in the initial phase of formulating a serious challenge in INTC's high margin server sector...Assuming an AMD success rate in this sector similar to that which AMD has experienced in the consumer, and more recently the mobile, sectors, the INTC "risk factor" which is high already, will become unbearable for all but the INTC employees who grace this thread with their presence!!!