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

To: Milan Shah who wrote (88129)	9/15/2002 2:10:25 AM
From: pgerassi	Read Replies (1) \| Respond to of 275872

Dear Milan: It is when you do not have the design resources for doing everything at once. But, Intel is no better. They have made just as many (if not more) mistakes (Itanium, Rambus, i820, P4, etc.). Not taking the time to fix bugs (errata in Intelspeak), gets you things like P3-1.13 and FPU Div bugs that can kill your reps. When the market is a down as it is now, you see a lot of slippage because the reduction in R&D. Motorola, Intel, TI and many others are just as bad off, if not worse, than AMD. If three or four weeks are so hard for you to accept, you are investing in the wrong business group. Try utilities or bonds. Pete

To: Milan Shah who wrote (88129)	9/15/2002 11:23:46 AM
From: Jim McMannis	Read Replies (2) \| Respond to of 275872

RE:"The fact is that AMD has blown it. Athlon was a fluke - AMD is back to its normal ways. It has caused a whole bunch of partners to invest, and is now set to completely disappoint them." True, everyone has the infrastructure ready and AMD craps out delivering the chips. As usual AMD has no backup plan for Hammer. It's either SOI or bust. SO, looks like it's bust for a while longer while they go to plan B which is what they should have had in reserve. AMD keeps doing this over and over again.

To: Milan Shah who wrote (88129)	9/15/2002 1:17:11 PM
From: Dan3	Read Replies (2) \| Respond to of 275872

Re: AMD is back to its normal ways I think the present problem is more due to Intel having been able to pull in its roadmap by between 1 and 2 quarters, than anything else. As a result, AMD has been forced to scramble to push Athlon XP ahead, and AMD simply doesn't have the resources to do a priority acceleration of Athlon XP while simultaneously launching a new chip on a new process. Intel accepted a $5 Billion loss last year (look at what happened to their working capital) in order to execute a one-time roadmap acceleration. Intel effectively (though they've hidden it on paper) threw away billions in 1 to 2 year old FAB investments to gain 3 to 6 months on AMD. As a result, AMD has been forced to back off some of its new initiatives and focus on keeping its core Socket A business strong. This wasn't so much a failure by AMD as it was a very strong (if very costly) action by Intel. Intel has been talking big about dumping their current FAB configurations for 90 nanometer production within a year, (which would lead another big working capital loss) but slashing their capex forecasts almost monthly as they try to maintain paper profitability. Intel's capital reserves have gone from huge to very large. Another push like the one just completed would take their reserves down to limited - which would eliminate the best thing they've got going for them as a corporation.