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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Tenchusatsu who wrote (147756)	6/19/2002 4:55:12 PM
From: tejek	Read Replies (1) \| Respond to of 1580593

I think you're proving my point even more. Intel was willing to let margins deteriorate, or else prices wouldn't have been slashed last month. Intel is not going to back off, and neither is AMD. Guess who's going to win a war of attrition? Tenchusatsu, you know how the funds keep INTC's stock price from dropping too steeply when there's trouble. You know how when INTC warns it gets a haircut while others get a buzzcut. Well, there's an understanding between INTC's mgmt and the funds that hold it, and that is that INTC must stay profitable every quarter. If it should slip even for one quarter, all hell would break loose. So AMD is not the only one who has a problem in this price war and limitations on how far it can go. Maybe what we should figure out which comes first: AMD burning through its billion dollar cash pile, or INTC experiencing a negative quarter. ted