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 : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: KENNETH R SANDERS who wrote (38685)	11/2/1997 10:24:00 AM
From: Darin	Respond to of 186894

To All, the lastest on AMD's yield progress, according to Lehman: YIELDS GOING UP; STILL NEED MORE. We just finished our meeting with AMD and learned that yields are going up. A variety of top level executives indicated that AMD was suffering ongoing substantial yield reversals on the K6 line. However, after meeting with top management at AMD today, we are persuaded that is not the case. AMD must make further progress, but yields having dropped substantially in late August, have reversed more than halfway. We continue to think the next 6 weeks is critical. They have delivered on price, delivered on performance, now they need to deliver on volume. They seem to be making progress.

To: KENNETH R SANDERS who wrote (38685)	11/2/1997 10:39:00 AM
From: Joey Smith	Respond to of 186894

Ken, I don't think AMD is dumping simply because they don't have enough supply to dump <ggg> If they are dumping, it might be their 166 parts, which because of Intel's agressive price cuts, they might be selling at or below cost. Remember, AMD HAS TO sell their chips at a 25% discount to Intel, because of the switching costs to OEMs. Price is the ONLY advantage AMD can offer over Intel, plain and simple. AMD looked like a "can't miss" investment 6 months ago, but now I don't know. The reason is because no one thought back then that Intel would be as agressive with their price cuts. Cyrix has a better strategy by concentrating on the low-end, consumer electronics segment and not taking Intel head-on, but expect intel to come out with a specific chips for this segment real soon and watch Cyrix stock go down. joey

To: KENNETH R SANDERS who wrote (38685)	11/2/1997 12:15:00 PM
From: Paul Engel	Read Replies (1) \| Respond to of 186894

Ken - Re: "Are they selling their product for less than their cost to manufacture?" When AMD lost money I'd guess that they have to be selling below their costs! And AMD lost $67,000,000 last quarter (before a tax gain). Paul