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

To: KeithDust2000 who wrote (148226)	1/19/2005 8:49:46 AM
From: TechieGuy-alt	Respond to of 275872

It´s indeed BS. They said the same thing at the last CC. And it obviously didn´t work. I believe, re. flash, that AMD is at the point today that Intel was with their DRAM business decision back in the 80's. That was the best decision that Intel made- ever. AMD needs to do the same- exit the rapidly commoditizing flash business ASAP- at least till they can get _something_ for it. Spin it off- they may get ~1.5X sales for the damm thing. It may even be nuteral from a flash standpoint (i.e. the flash biz may get AMD's current valuation) and hugely positive from a CPG standpoint. Also, on the CPG side, sales were obviously more weighted to the Sempron side than they expected. Which in turn means that higher-end sales came in below expectations, confirming the dissapointment I´ve expressed here time and time again wrt. the Athlon 64 adoption. Hopefully, they´ll be able to do something about it. Actually, CPU's- at least servers and mobiles and high end dektops are not commodities. There are only two players in this market and barriers to entry are enormous. Intel is also loath to dump prices in their high margin business that captures ~100% of their profits. It would be a disaster for them. I still think that the CPG story is currently intact. True, CPG revenue growth came in a little shy of expectations (~9% vs. 13+% expected), but you really _can_ chalk that down to slow and stead progress in getting socket wins. Making headway in the server biz takes time, but the good news is that socket wins last a long time. Of course a recheck to this story would be required at mid year and again at year end to see if Intel really has a 65 nm competitive response and what the performance is. If AMD can really pull off a 30W, 55W and 95W dual core Opteron and Intel can only pitch a 130W SMithfield against it for the entire year- AMD can make some serious head roads in that market- not to say anything about burnishing its image. Thank gosh for different sockets and infrastructure. A company cannot plug in an Intel CPU if Intel offers them a price break on a product line. That was the most important thing that happened- socket and platform differentiation. It was originally painful but worth it. TG