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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: hpeace who wrote (12650)	1/4/1998 2:55:00 PM
From: ed	Respond to of 97611

The problem for AMD is : 1) They do not have a solution to compete with Mercede on the high end. 2) With Intel push down the price of PII series CPUs, and AMD's policy to sell always 25% cheaper than Intel, AMD's profit will be thiner and thiner, while at the same time do not have a high end chip to compete with Mecede for fat margins. With the price of low and middle end CPUs keep droping, the strategy for future low and middle end CPU business is volume production with high yield, which means you need to invest more for volume productions, the FAB. I doubt AMD has the budget. As a result of all about, the more AMD sell, I will see the more AMD will lose, it is an endless dark hole. I do not see the possibility for AMD to reverse the trend.