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

To: Rink who wrote (210944)	9/15/2006 7:24:13 AM
From: jspeed	Read Replies (1) \| Respond to of 275872

Since AMD is in dire need of performance, I don't see why they would go for lower power. ... A possible rationale for the lower power is targeted at the commercial market. Performance is not so important there. It's more total cost of ownership (i.e. electric bills and cost of the product). Remember, commercial market is an important and newly opened market for AMD. Their primary competition there will be P4s. The timing is also right for this theory. Most of the capital spending on new computers happens at the start of most companies fiscal year. The consumer desktop is the only market where you get a premium for performance and power is relatively unimportant. In that market, competition will be stiff and margins won't be that great. To me, it's not at all apparent that AMD is in dire need of performance.