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

To: eracer who wrote (207633)	8/4/2006 8:01:26 PM
From: niceguy767	Read Replies (1) \| Respond to of 275872

"Who cares about revenue share?" I can assure you that INTC does...and despite utilising every tactic available to them, INTC has seen AMD's Revshare grow from 9.85% in Q1/05 to 18.1% in Q2/06! I really think you should pay a little more attention to Revshare (and less to INTC's PR dept releases) as Revshare is a much "STRONGER" barometer of REALITY! Think about it eracer...AMD's Revshare has doubled in the past 15 months...Wonder if AMD'll add on another 10 points or more Revshare in the next 15 months? (I'm noy betting against such a possibility, especially now that Dell has, by its actions, told INTC to eat their P4's and now that IBM has told INTCby their actions, to shove their Xeon's into a dark place where the sun don't shine.) ;-)

To: eracer who wrote (207633)	8/4/2006 9:23:49 PM
From: Petz	Respond to of 275872

re: <Recent price cuts as well as a move to larger cores are going to put more pressure on margins. I don't dispute that price cuts will affect margins. But this is probably counterbalanced by the fact that Fab 36 will be producing 50% more output with nowhere near 50% more cost. Or to put it another way -- no one doubts that AMD will sell more CPUs in Q3 than in Q2. Using the same number of people working the same number of hours, the same depreciation and slightly more raw materials and energy costs. So I think AMD needs only get a small increase in revenue $'s to maintain the same gross margin. Petz