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.

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

To: Praveen Johal who wrote (26455)	12/5/1997 1:14:00 AM
From: Yousef	Read Replies (2) \| Respond to of 1572711

Praveen, Re: "I do have one question for - do you consider AMD a good price now to buy into (19-21 range)?" This is a very good question ... and I see some others (Brian & Petz) have given their answers, let me take a shot. 1) The AMD .35um process has been "tweaked" to start producing 233mhz parts ... any continued drift of process parameters could take these yields back to zero. 2) The AMD .25um process is not as aggressive from a performance point of view as compared to Intel ... thus AMD will be at least 1-2 speed bin behind in Desktop and Notebook markets during '98. 3) The AMD .25um "ramp-up" costs (silicon, equipment depreciation ...) have not even shown up yet on the expenses. This will lead to losses in Q1 and Q2 of '98. 4) Unexpected problems ... like low .25um yield would be extremely damaging. Given all this, I believe the market (current AMD stock price) has discounted the expected Q4 loss ... but the market expects a profit in Q1. I don't expect AMD to post a profit until second half '98 ... thus I expect that AMD stock will likely test the low-teens before moving up much. Make It So, Yousef