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Technology Stocks : AMD:News, Press Releases and Information Only! -- Ignore unavailable to you. Want to Upgrade?

To: Kenith Lee who wrote (5110)	3/20/1998 12:53:00 AM
From: Tiley	Read Replies (1) \| Respond to of 6843

Kenith, Re:" Why not sell them as 333?" What do you think Intel is selling as 333MHz P2 today? Besides as I said, the pricing depends on a lot of factors- yield, capacity, demand, elasticity, competition, product mix etc. Sure Intel would sell you as many 333 as you want today, the question is that of demand and what the market is willing to pay for them (over the 300). Believe me, Intel's problems this quarter are not yield related - its more a question of demand and the premium the market will pay for the higher speed parts. Besides, the .25u capacity is used also for the notebook parts as well as stockpiling the 350/400 parts for the introduction. As for yields, Paul said 95% of the parts over 350MHz - I believe he was being conservative. I said over 20% over 400MHz and I believe I was being very conservative. As for 233 MHz P2, those are not .25u but .35u parts. You do know Intel still has a large .35u capacity even as they're rapidly converting to .25u and they are not in the habit of having capacity lie idle. You will see the 350/400 intro'd very soon anyway. So what does all this mean in my opinion - AMDs contribution in all of this has been to put pressure on Intel's margins. I believe AMD will gain market share but only in the low end. AMD will not make gobs of money but will become more profitable (than presently :-)). AMD will continue to stay at least 2 speed grades behind Intel. Intel will take 2-3 quarters to work out of the current problems. AMD stock will rise on speculation and fall on reality (as so many times before). Since I like making money so much, I've taken a position in AMD (around $19 as I posted earlier) and will sell when reality bites. I do reserve the right to change my opinion without notice. So my question for you is (as you seem to have good sources at AMD :-) - will AMD have 350MHz parts in volume before Q3? Best Wishes, - MJ