Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Sarmad Y. Hermiz who wrote (201499)	6/10/2006 10:20:17 AM
From: colin1497	Read Replies (2) \| Respond to of 275872

I generally agree. They will convert the 90nm to something like chipsets and AMD's YOY profit increases will slow, but they are not going to suddenly bleed. The thing I would point out to you is that you don't seem to recognize the fact that 65nm netburst will be heavily discounted as well. Cedar Mill and Presler aren't particularly desireable comparted to Conroe and Athlon 64. In the end, the discounting will be to whatever it takes to move the volume that they need to make, and since they've announced that through the end of the year they're going to only reach 30% conversion to the new architecture, they're going to be making a LOT of netburst. There will be lots of "good deals" on netburst machines. Of course, we have little netburst Dell's all over our offices and they are aweful. As soon as you open something processor intensive the fan spools up and the machines begin to rattle. Our IT department decided 6 months ago not to buy any more new netburst machines unless we added new people or we had hardware fail. Our engineering workstations are all Athlon 64 4800+'s that we love. This fall when the boxmakers release their business platform updates we'll make a decision on new desktop machines and netburst won't be on the table, it will be either Athlon 64's or Conroe's. On the desktop though, we're buying a commodity, so ultimately we want good performance in a great package at a low price. We will likely bid Dell against HP and it will decide what machine we buy for the next year. If the Dell Conroe box can't compete on price with the A64 box, and HP has a good A64 box, we'll probably end up going HP. If the netburst boxes weren't so obnoxious, they'd be an obvious choice. We won't buy more at any price though. Others will buy whatever is cheapest, and that will be netburst.