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

To: StockMan who wrote (28961)	2/26/1998 5:23:00 PM
From: AK2004	Read Replies (1) \| Respond to of 1573980

Now, now Stocky that is not the way to talk to your future master, :-))

To: StockMan who wrote (28961)	2/26/1998 5:43:00 PM
From: Maverick	Respond to of 1573980

Rumored alliance with IBM boosts AMD shares By Larry Barrett, ZD Inter@ctive Investor February 26, 1998 4:14pm Inter@ctive Week Online Shares of Advanced Micro Devices Inc. (AMD) picked up $3.25 per share, or 15 percent, to $25 Thursday on reports that the semiconductor manufacturer is in negotiations with IBM Corp. (IBM) to co-produce its K6 microprocessor. Company officials at AMD and IBM declined to comment on the rumor, but analysts said the possible marriage makes sense for both companies. "IBM said that it's always interested in expanding its foundry business, so it fits for them," said Michael Geran, an analyst at Donaldson Lufkin & Jenrette. "And AMD has struggled so much in ramping up their production that any help they could get would be a welcome sight." According to a source familiar with the talks, IBM and AMD are in "early to mid-stage" negotiations for a deal that would have IBM building chips according to designs specified by AMD. "This is a continuing saga," Geran said. "Everyone keeps scrambling to reach a certain level of performance [Iand then Intel moves the barrier. This might be a time when AMD actually snatches victory from the jaws of defeat." Last quarter, AMD lost $12.3 million, or 9 cents per share, on sales of more than $613 million. First Call consensus expects it to post a loss of 17 cents per share in its first quarter. "Today's run shows that some institutional investors perceive that with IBM's sophisticated production abilities, AMD will have an easier time ramping up their K6 and K7.

To: StockMan who wrote (28961)	2/26/1998 5:45:00 PM
From: Maverick	Read Replies (1) \| Respond to of 1573980

IBM rumored to manufacture K6, K7, part II production for high-end and low-end personal computers." Several major personal computer companies, including IBM and Compaq Computer Corp. (CPQ) have used the chip to trim costs on their lowest-priced models. But AMD has been [Image] unable to fully capitalize on the growing popularity of the chip, in [Image] part because it is in the midst of a major transition to 0.25 micron [Image] production of the processor. IBM shares closed up 25 cents per share to $105.50. Reuters contributed to this report.