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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Taro who wrote (288908)	5/25/2006 7:38:13 PM
From: tejek	Read Replies (1) \| Respond to of 1572151

The interesting question now is whether the Dell decision will enable AMD to break out of the competitive arena within which Intel has historically corralled it. In this particular industry, where both competitors assess each other's strategic position continuously and in realtime at all levels, this seems rather unlikely, though Intel's margins are quite likely to be impacted. I think AMD has a incredible opportunity here. However, it requires that they execute like they have never done before while finding another niche in which to play. PC chips is a dead end road for both INTC and AMD. INTC has and continues to diversify. AMD has not. IMO its important that AMD use all its prowess to maintain its edge against INTC while making chip diversity a reality. † A forecast by Merrill Lynch analyst Joe Osha suggests AMD's share of the market for server microprocessors could rise to 26% by the end of 2006, up from 16% a year earlier. On a straightline rise hypothesis, this could translate to an average 5% gain by AMD over 12 months in the server market. Clearly this depends on when Dell actually provisions for the machines, which according to one source will not be shipped until the end of 2006. Given Dell's classically short pipeline, the Merrill Lynch estimate looks high. I tend to agree........Osha has always been either too optimistic about AMD's possibilities or tends to look too far into its future. I'm just impressed with how far AMD has come.......the little engine that could. <g> I plan to buy some when this option's issue is over and the stock recovers and starts to ramp for the fall buying season.