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

To: tcmay who wrote (78664)	4/28/2002 6:38:14 PM
From: Ali Chen	Read Replies (1) \| Respond to of 275872

"But Intel is still making money during this price war, and AMD is not." Tim, when Intel pays its stock broker $1,000,000,000 per quarter to cover stock options cashed out by Intel top employees, where those money are expensed from? Maybe it is enough of the nonsense of Intel making money? - Ali

To: tcmay who wrote (78664)	4/28/2002 7:58:39 PM
From: niceguy767	Read Replies (1) \| Respond to of 275872

tcmay: "The Intel juggernaut is rolling right over AMD." Yep...1st it was Cumine, now it's p4, next it's ahhhh, next its ahhhhh, well next it's something...Oh and this INTC juggernaut that is rolling over AMD has resulted in FY01 revenues (and by the looks of it, FY02 revenues) that are below FY98 levels...This INTC juggernaut appears to be more of an INTC juggernaut enigma!!! With financials, the likes of INTC's, one needs to consider the likelihood that INTC is currently perilously close to the edge of a steep decline...One needs to consider the next phase in INTC history if p4 cannot be sold profitably, an outcome that, based upon recent INTC financial trends, cannot be dismissed by any reasonable financial analysis... INTC's current extreme marketing measures, as evidenced by the exposure on this thread of the recent INTC marketing memo, would seem to delineate actions of a company in panic mode as opposed to any company juggernaut!!! INTC is in serious trouble if either p4 stalls out or if AMD meets its current Clawhammer/Opteron schedule...Just more marketshare for AMD and another bite out od INTC margins which have already shrunk over 10 points in the past 2 years...Yep, INTC is perilously close to the "red ink" edge...It certainly isn't clear to me from reading INTC financials that "red ink" can be escaped much longer at INTC, although I do continue to be dazzled by the work of their accountants, who, with the recent goodwill masquerade, have managed to defer "red ink" a while longer...Now, if only, INTC's R&D and prooduction areas could only perform at the same levels as INTC's accounting and PR departments, I might be convinced that there does exist, anymore, an INTC juggernaut!!!

To: tcmay who wrote (78664)	4/28/2002 11:48:54 PM
From: Dan3	Respond to of 275872

Re: But Intel is still making money during this price war, and AMD is not Intel didn't account for $5 Billion in processor manufacturing equipment costs during 2000-2001, hoping that they'd be able to own up to those costs later, when actual profits returned. So far, by cutting costs, they're back to treading water, but in no position to accept those costs on their income statement. AMD is accelerating the move to mainstream 64-bit computing - supported by Microsoft and the rest of the industry, anxious to put some excitement back into the computer business. This could end up forcing Intel to try to move Itanium into the mainstream when it is still a large chip that's expensive to produce. That would require Intel to make a greater than 2000-2001 sized capex investment, which would finish the process of draining Intel's capital reserves. Intel's problem is that some of the magic has gone out of the business, and people just don't feel like they need to spend $500 to $1,000 for $25 worth of silicon, anymore. That means that Intel is going to have a harder and harder time recouping the investments it has to keep making in the large, expensive FABs it needs to be able to manufacture its large expensive chips. And if Intel has to shift from P4 to Itanium in 2003-2004, instead of in 2005-2006, they will face huge additional capex costs.