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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (14053)	1/2/1998 11:38:00 AM
From: robbie	Read Replies (2) \| Respond to of 70976

<<Intel knows its competitors are tougher than ever. Advanced Micro Devices Inc. (AMD) is rapidly scaling up production of its K6 chip, a Pentium II alternative that sells for one-quarter the price. Isn't this incorrect? The K6, to my understanding, is a x686 type of architecture and will not compete with the Pentium II but rather the Pentium Pro, a chip INTC is practically giving away.>> Brian, The K-6 will compete against the Pentium II. AMD's goal is to sell the K-6 for 25% less than the Pentium II, not 1/4. I don't think they can do it though. Intel just announced another price cut last week. I sold all my AMD stock and put it in AMAT. Robbie

To: Proud_Infidel who wrote (14053)	1/2/1998 10:43:00 PM
From: J. David	Respond to of 70976

I try not to underestimate Intel's competition but don't feel that AMD poses a serious threat to their business. The Compaq's of the world will do what they can to keep AMD and others around in order to put some pressure on Intel's pricing without pissing them off. They know Intel is the only company capable of providing them with the volume of chips the market demands. The bottom line is that for anyone to have a chance at beating Intel they'll have to do a lot more than match or slightly exceed their chip performance. And when they do Intel will lower prices to be sure they don't make much money. FWIW my confidence in Intel comes from their manufacturing strength, marketing savvy, and especially their strong "paranoid" management. AMD might be a decent trade from time to time but I wouldn't be a long term holder.