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

To: _Jules who wrote (210749)	9/13/2006 8:59:20 AM
From: jspeed	Respond to of 275872

The more I think about the ATI acquisition, the more I like it If we are to believe the rumored percentages of AMD/Intel Dell products in '07 (i.e. 40% AMD/60% Intel). Then truly the consumer and commercial MPUs are commodities. That is, the consumer is basically going to ignore the brand and buy whatever fits their cost/performance. Continuing on this premise, beyond 2008 AMD will have to find other avenues (beyond making MPUs) that produce revenue streams if AMD wants to continue to grow. Aside from helping with platforms in the short term, ATI provides longer term possibilities in handhelds, HDTVs, etc. Think Coke vs Pepsi and ATI is Frito/Lay. There's some low hanging fruit there like integrated CPU-GPU. But after that, there are no obvious killer apps. AMD will be well positioned to create something, but it will still take vision and good leadership. Intel has been attempting to lead in some of these markets without much success for years. Point being that ATI's other businesses could be Frito/Lay or they could be Xscale. On the whole, though I still think the ATI acquisition was a great move.