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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: dr_elis who wrote (28638)	2/16/2006 3:03:52 PM
From: Sarmad Y. Hermiz	Respond to of 95640

That's impossible this year. And I doubt that Dell would announce using AMD for next year at this time. The reason it is impossible is that AMD simply does not have the capacity to supply Dell (they are sold out, and their new fab 36 is not in full production yet). So if Dell does want to use AMD, they would have to confine it to just very few models. In which case they would give up very large ($1B ?) of intel marketing rebates, for no gain. Because their margin would not be higher on AMD-based systems. The only reason people buy AMD systems is because they are $50-$100 cheaper than Intel. And there is no way Dell can sell them at parity. Anyway, if the impossible did happen, then I expect INTC would drop some more, and AMD to go up a lot. Sarmad