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

To: colin1497 who wrote (201473)	6/9/2006 9:54:25 PM
From: Cookie#1	Respond to of 275872

The issue here is simple... no choice but to fill up the fabs and then you drive prices and margins into the floor. re tulsa: sheesh 16 megabites of cache...what do they charge for that futha mucker INTC has other ways to use fab capacity.

To: colin1497 who wrote (201473)	6/9/2006 10:13:56 PM
From: Sarmad Y. Hermiz	Read Replies (1) \| Respond to of 275872

>> They have a HIGHLY capital intensive business. ... Yes they do. But one factor to account for in any argument is that Intel has budgeted $6B this year for cap-ex. If they were expecting to make just make-work parts, they would back-off on building new fabs and spend that money on more buy-back. They just opened a new fab in Chandler. They would at least slow down its ramp. So I expect Intel to either discontinue the reduced parts or replace them with 65nm parts. I don't know this for sure, but a few months ago the D9xx family was introduced. Nothing was cancelled at the time. Now conroe will be added, and something will be discontinued. The P4 5xx family is my nominee.