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

To: dougSF30 who wrote (237422)	7/27/2007 12:36:52 PM
From: colin1497	Read Replies (1) \| Respond to of 275872

I don't disagree with you on this, Doug. I'm not sure that this is something that is different, they always thought this was what they were doing, but now they're really doing it, at least this certainly appears to be what is happening. The question is, does this pay off for INTC investors? I'm not confident that it does. As they push harder they reduce their profitability (shorter cycles mean higher % R&D cost, for instance). Certainly it could be worse, they could have netburst. They are really fortunate that AMD didn't have the capital and capacity to turn the screws more when they had the lead. Now INTC is back in the lead and they can turn the screws, but 3 years from now, where is INTC and where is AMD? I'm guessing that INTC won't have increased its market cap that much from present levels because earnings growth won't be that high from present levels, and AMD will continue to be around and squeezing, but they may well be a part of another company or they may be private -- though it's hard to imagine who would do the privatization deal and go up against big bad INTC.