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

To: Joe NYC who wrote (83209)	6/21/2002 1:06:37 PM
From: wanna_bmw	Respond to of 275872

Jozef, Re: "See my post about crawling and walking. AMD is slowly building up credibility in this market. Barton will not start from scratch. It will start from base already established by Palomino, Sledgehammer will be a follow-up of Barton." This would be a great strategy if the market were booming. Spend the money now to get established in a higher margin market, even if the return on investment is several years in the future. However, I am concerned that AMD has spread their resources too thin to compete with Intel in all segments. It has increased their cost structure, and given them many weak points for Intel to attack. They will probably be very successful in a few of the markets they are pursuing, but they can't continue to lose $200M in any given quarter, especially since they've been losing money in many quarters before this one. Their business model is idiotic. I think that AMD could put their processors solidly against Intel if they marketed towards a given segment, and gave it all they had. If that segment is high performance desktops, fine. If it's mobile, good. Servers, great. But AMD's problem is that they continue to shift from one segment to another, which only gives their customers the impression that AMD isn't willing to stick it out in any one area. They aren't doing anything about QuantiSpeed any more, and doubt continues to build over that. They aren't advertising for mobile, even though they made a huge show for it a couple quarters ago. 50% U.S. retail was Jerry's goal. It might have made more OEMs think twice if AMD followed through, but as usual, their focus shifted to something else. Now it's all Hammer, Hammer, Hammer, but AMD still doesn't have a consistent message. They will never get more than minimal penetration until they can follow through with their initiatives, and all the while, you will see losses. Hammer will probably generate earnings, if AMD executes well on design and manufacturing (big if!). It may actually do well for a while, too, in servers or whatever else AMD is pushing towards. But how long do you think it will take for AMD's eyes to get bigger than their pocketbooks, and spread themselves too thin in trying to take over other markets? AMD is a horrible long term investment because they are always messing that up. The only reason why I am holding is for Hammer. If AMD messes that up, then good bye. wbmw