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

To: Bill Jackson who wrote (28283)	2/3/1998 8:32:00 PM
From: Tiley	Read Replies (1) \| Respond to of 1572025

Bill, Re"CPU pricing": I think I'm confused as to what your point is. You agree with Intel's pricing policy and yet seem to be complaining about Intel stock price. My point is that Andy Grove and company should be making the right choices to ensure Intel's long term growth. And so far they have. This is not the first time that they have done so and probably will not be the last. I do not think long term investors should pay any heed to short term stock pricing. If your investment time horizon is "a few weeks" or a few months, then there are other stocks you should be chasing. Look at the 386 to 486 transition, 486 to Pentium transition and now Pentium to Pentium2. It is the same story - you probably would have pointed out the effect of 386/486 price cuts on the stock price then, but ask any long term holders today if they are complaining. I would venture to say that Andy Grove and company have a very good idea about AMDs costs and believe me, they'll price their products to ensure that they have enough returns to ensure their future growth while denying competitors resources needed to become a threat in the future. So rest your mind, Intel products will never be priced to finish off AMD (they still had 6.7Billion in PAT to play with if they really wanted to do so), they will be priced to ensure that AMD survives but never becomes a threat (and at the same time inflicting a stockmarket version of chinese water torture on AMD stockholders), Best Wishes, MJ