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

To: fyodor_ who wrote (123948)	6/16/2004 9:54:28 PM
From: Biomaven	Read Replies (3) \| Respond to of 275872

However, if AMD is demand-limited at the high-end, they are suddenly faced with a problem of satisfying demand at the rest of the spectrum without losing money Thanks for that insight. So which fits the current situation better - that scenario you just gave or the one at the other end of the spectrum, where they are demand-constrained at the lower end, and so can't produce enough high-end parts without over-producing low-end processors? But the resulting processors bin roughly according to a Gaussian distribution. In other words, there will always be far fewer high-end chips than low-end chips. But aren't the tails of a Gaussian distribution symmetric? Or is the low-end tail simply discarded as unusable and not relevant to the calculation? If so, then demand-constrained at the lower end would be the situation with more bite because a lot more chips would end up surplus if you had to raise overall production to satisfy high-end demand. Peter