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

To: niceguy767 who wrote (214799)	10/24/2006 6:34:27 PM
From: dougSF30	Read Replies (1) \| Respond to of 275872

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. Nope. With ATI in the mix, expect GMs in the 40s. And with the continued ramp of Woodcrest, and launch of Clovertown, expect AMD to continue giving back server marketshare. Intel will be able to offer roughly double the performance per socket in 1S and 2S servers. That's going to hurt.

To: niceguy767 who wrote (214799)	10/24/2006 6:48:52 PM
From: pirasa2	Read Replies (3) \| Respond to of 275872

with ASPs almost sure to go down in Q4 vis a vis Q3, I cannot see how gross margin can rise to the 55-60% range. 65 nano efficiencies alone won't do it. The real problem is that Intel is expected to flood the high end with 10+ million Conroes in Q4. 2.4-2.8 GHz X2's will become progressively harder sells at their current prices of $250 (retail) and up. AMD urgently needs to act proactively this time and promptly move its marketable range to 2.2 - 3.0 GHz, starting the X2 4200+ at around $140 (retail). Yet it does not seem that its binsplits will allow such a move.