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: ChrisBBo who wrote (214750)	10/24/2006 1:44:41 PM
From: jspeed	Respond to of 275872

ChrisBBo, what percentage Core2 might they reach in Q4 ? here's the latest desktop guidance. Looks to be about 22% in Q4. hkepc.com

To: ChrisBBo who wrote (214750)	10/24/2006 1:47:58 PM
From: heatsinker2	Read Replies (1) \| Respond to of 275872

Chris "Why do you think AMD's margins will increase ?" AMD said margins will increase in the CC. They blamed the margin problem on a shift from desktops to laptops, and said they were not prepared.

To: ChrisBBo who wrote (214750)	10/24/2006 1:48:52 PM
From: plantlife	Respond to of 275872

That question was asked at the conference call, and Andy could not say when crossover would occur. I don't remember the time frame that was batted around, but it was not in 2006, and somewhat vague in the 2007 period. It didn't appear to be as near term as you are suggesting, but if you want additional color on that situation, read the CC transcript.

To: ChrisBBo who wrote (214750)	10/24/2006 6:33:10 PM
From: niceguy767	Read Replies (2) \| Respond to of 275872

The precipitous decline in AMD's gross margin in Q3, although not totally unexpected given X2's high cost of production at 90nm, did blindside me. Had Q3 margins held the 55% to 60% range, AMD would have posted $0.40 eps and AMD price would now be $35...Woulda, shoulda, coulda! Management assured analysts that 2 points of the margin would be recovered in Q4 by reversing Q3 inefficiencies. The HUGE question for Q4 remains whether or not richer mix of laptops and servers, thanks to Dell, combined with any 65nm cost savings will enough to recapture 55% to 60% gross margins. The market, so far anyway, isn't buying any significant gross margin recovery in Q4...but, the market has been known to be wrong on occasion!