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

To: Dan3 who wrote (160908)	3/2/2002 11:57:09 AM
From: greg s	Read Replies (1) \| Respond to of 186894

re: That's what's been making money for Intel, and that's the advantage over AMD that Intel has lost. And that advantage does not come free! From Magee, the Oracle of 'Droid: AMD, of course, is playing a risky game. Its Athlon XP and Clawhammer chips are made in Dresden. It's a top notch fabrication plant but it won't be for some time that AMD will open its second state of the art fab in Singapore. It therefore has all of its CPU eggs in one basket and if anything should go wrong at Fab 30 in Dresden, AMD would find itself well and truly kippered, while Intel would be able to just switch the taps on, if one of its Pentium 4 fabs got skewered ... ... There's a limit to the number of chips AMD can churn out given its reliance on one fabrication plant for the whole of this year and next, so it has to play a careful game and not overgenerate demand for its Clawhammer and Sledgehammer microprocessors. It is something of a tribute to AMD's skill that it has been able to get the Hammer family out of the door so quickly, in relative terms. Because of that accomplishment, it can also brag loudly about how much further it is along the path than La Intella. But it had better not brag too loudly, we think. The one big difference between AMD and Intel is that the latter puts a heap of dollars into research and development. AMD, on the other hand, while it has managed to beat Intel in various ways and through various means, may also find it needs to emulate its bigger brother in the next two or three years to come, and plunge considerable money into R&D. Intel has successfully diversified its business model and has an opportunity to further grab some dollars and market share with its wireless strategy. It may have at least two years to increase its share and to bring out products which will start to kick butt next year and the year after. AMD must surely be somewhat concerned that Intel seems to be moving the goalposts by emphasising the wireless and connected elements of its business, given that anything the chip giant gets out of the door in product terms will be proprietary and some years ahead of the competition. µ