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

To: Joe NYC who wrote (237363)	7/27/2007 8:40:01 AM
From: BUGGI-WO	Read Replies (1) \| Respond to of 275872

@Joe - Margins " the margins would likely be in mid to high 50s (across the product lines), with CPU margins ~60%. " Have you looked at Intel with sub 50 now and probably around 50% in Q3. And you seem to believe that under this scenario AMD with ATI will get to 60 - wow, all "physics" are thrown away. BUGGI

To: Joe NYC who wrote (237363)	7/27/2007 10:56:21 PM
From: wbmw	Respond to of 275872

Re: Interesting exercise. The only thing I would differ is that at such high revenue, utilization and ASPs (close to or in 90s), the margins would likely be in mid to high 50s (across the product lines), with CPU margins ~60%. Under that scenario, AMD would be profitable, but probability of such scenario coming true is very low. I think margins in the 50s is a pipe dream (actually, I think GMs in the 40s will be hard enough to achieve). And I think fab utilization is already high today, given AMD's yields. I don't see a benefit under my projection assumptions. If you are going to do any exercise at all, please feel free to be optimistic, but don't be unrealistic.