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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Evan Dimmer who wrote (25915)	11/13/1997 12:37:00 PM
From: Yousef	Read Replies (2) \| Respond to of 1580783

Evan, Re: "But, will, or when will, AMD 's get some larger name computer's to put there chip in? " This is an excellent question ... let me respond this way. The use of the K6 by Tier 1 vendors is based on supply and demand. AMD worked very hard early on to carefully HYPE the chip and convince vendors that this CPU was competitive with Intel's offering. AMD also aggressively priced the part. A number of Tier 1's announced systems (DEC, HP, IBM, Fujitsu, ...). But the problem has been that the supply is not there to meet the demand. Yield problems have critically "wounded" AMD by reducing the good-die-per-wafer for the 233mhz K6 (the high margin part). I'm sure that a lot of 166mhz CPU's were produced by AMD, but many of these parts were not "wanted" (no demand) and are probably still in inventory waiting to be "written off". Re: "do you all think that the price of AMD will go back to the low teens ..." Another good question ... If AMD fails to fix their K6 problems and starts slipping the .25um process CPU's, then AMD will continue to post negative earnings and I would expect the stock to trade in the low-teens. So, the key things to watch are the availability of the 233mhz K6 (as well as priced 25% below Intel's 233mhz P5MMX) AND news of any "slipping" of the .25um process/CPU schedules. Hope this helps. Make It So, Yousef