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

To: TGPTNDR who wrote (201144)	6/8/2006 4:00:25 PM
From: Sarmad Y. Hermiz	Read Replies (3) \| Respond to of 275872

ptndr, >> .(Days inventory.) How about units instead ? Anyway, to discuss it in this manner, you'll miss the point. Intel does not need to replace the merchandise they're dumping. Heck, they want to get rid of it. They would much prefer to sell parts they make in 300mm fabs at 65nm. Those cost them 40% less than the prev generation. Switch over to AMD. You saw that AMD has reduced prices by 50%. Now those parts will have to be replaced if AMD will have anything to sell next quarter. Will the replacement parts cost less ? Well, anything that is relocated to fab 36 could potentially cost less, if the fab was mature and running at full capacity. But it isn't. So likely, AMD will be selling the replacement parts at a modest markup at best, until they can get to full util and 65 nm. But that's at year-end. Now let's think some more, as BUGGI suggests. What sort of price war can AMD wage if they can't produce parts cheap. You might want to turn this back to Intel with same question. But Intel is swimming in tens of millions of excess processors. They're already made. AMD is facing the tough choice of holding on to share by starting wafers they'll sell at little profit. I think someone at fidelity has figured it out. Sarmad edit. regarding 40% cost reduction from 300mm at 65nm. Obviously double core will cost more than single core.