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: AK2004 who wrote (207503)	8/3/2006 7:22:23 PM
From: kepler2	Read Replies (3) \| Respond to of 275872

About $200M worth, per Intel.

To: AK2004 who wrote (207503)	8/3/2006 7:36:11 PM
From: Elmer Phud	Read Replies (2) \| Respond to of 275872

1 chip is an inventory so unless you specify the size the statement does not mean much. Andy Bryant In terms of inventory levels, I will give a long-winded answer, because I also want to explain a little bit about the second quarter, which [multiple speakers] …up over $750 million. If you remember at the beginning of the quarter, we expected a little less than half of that. We knew we would be trying to ramp Broadwater in that period of time. We did not expect Conroe to qualify until the third quarter. So what happened, if you look inside the quarter, the surprise increase in inventory is several hundred million for the Conroe product line, better health in Broadwater, so I took lower inventory reserves there. A third element is in the second quarter, my mix was a little lower so I had a little more dual-core content in inventory, so it is a little higher. Essentially what I am trying to paint to you is what happened in the second quarter is I built a lot of product that is 65-nanometer processors and 90-nanometer chipsets, which is why I think is an okay thing. Going into the third quarter, I would expect profits to be about flat. We had a big profit evaluation in the second quarter for the Conroe and Woodcrest. I would expect chipsets to still grow a little bit. I still think we are digging ourselves out of the chipset hole. At some point, we made steps to turn that over but not in the third quarter. So overall, expect a little increase in the third quarter, but I do not think it is a big increase. My comments: So Intel built "several hundred million" dollars of inventory for Conroe. Not bad for a product some here claim Intel can't produce.... Of course they will just claim that Intel is lying again...