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

To: heatsinker2 who wrote (211165)	9/19/2006 11:56:09 AM
From: combjelly	Read Replies (1) \| Respond to of 275872

"Is this your own interpretation, or is someone else coming to the same conclusion?" Just reading between the lines. It does neatly explain why Dell is picking up AMD now and why they are projecting 40% of their business to be AMD next year. And Dell is relly pimping AMD, hard. I suppose it is possible that AMD is giving chips away to Dell, but it is more likely that Dell sees AMD having a superior solution on the commercial desktop at some point in the near future. Plus, AMD seems very confident for the future and haven't slacked a beat on building capacity. As I have pointed out, mobile and commercial desktop processors share a lot of needs. In addition, it allows an OEM to present a common processor for notebooks and desktops to commercial clients. Given how anal most IT departments are, that is a huge plus. And all AMD has to do is enhance the basic K8 with the double-wide path the the caches and any other integer enhancements that K8L will have, add some PCIe lanes and accept little or no premium for low power and they have the perfect processor. Given that they already are ceding the last point for the most part, it is a no-brainer. And it has the added advantage of re-defining market segmentation that gives Intel no good choices. Either Intel takes their lumps in losing a large chunk of the commercial desktop market, or their lose their premium for low power in the notebook market. And there is a fair chance that both happen.