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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: zx who wrote (51661)	3/31/1998 2:33:00 PM
From: Ibexx	Read Replies (2) \| Respond to of 186894

ag, The following new releases addresses the current market psychology re. AMD, right or wrong: _________ Tuesday March 31, 2:10 pm Eastern Time AMD jumps again on positive momentum SAN FRANCISCO, March 31 (Reuters) - Shares of Advanced Micro Devices Inc jumped again Tuesday, after gaining 1-7/8 Monday, as another Wall Street analyst made positive comments on its improving yields and talk of an equity investment. Traders also said that a report in the upcoming May issue of PC World magazine - which said that a pre-production version of Intel Corp's (INTC - news) new Celeron chip for the sub-$1,000 market does not perform as well as rival clone processors - was boosting AMD's stock, as well. Prudential Securuities analyst Hans Mosesmann said he upgraded AMD to a buy from a hold, with a price target of $35. ''The two key reasons for our cautious position on the company (manufacturing problems and cash crunch) have been addressed and should allow the company to effectively compete in the attractive x86 processor market going forward,'' Mosesmann said in a note to clients. Mosesmann said industry sources indicate that AMD is finalizing an agreement with a major computer manufacturer to take an $800 million or greater equity investment in AMD. ''Speculation that IBM may be this investor (has) a good possibility (of being acurate) since it would make strategic sense for IBM as a vehicle to continue and ensure its presence in high-volume PC processors,'' Mosesmann said. A spokesman for International Business Machines Corp (IBM - news) declined Tuesday to comment on rumors and speculation. Late Monday, an AMD spokesman in Sunnyvale, Calif., also declined to comment on analyst speculation. AMD shares, after rising on Monday, jumped an additional $2-14/16 to $29-07/16 and was the second most active share on the New York Stock Exchange. On Monday, two analysts made positive comments, also citing improving manufacturing yields. Ashok Kumar, an analyst at Piper Jaffray Inc, pointed out that AMD's yield improvements are still in test lots, and also said he doubts that IBM is investing in AMD. ''Who wants to invest in a company to have the bragging rights to go against Intel?'' Kumar said. ''IBM had its chancewith the PowerPC (chip) and they got their nose bloodied... That's not where the money is for IBM.'' But AMD is facing a cash crunch, with a payment on a $400 million debt offering due sometime in May, and analysts said they believe something is in the works. Kumar said other potential investors could be any of the memory chip makers in Japan who are trying to diversify. On Monday, Volpe Brown Whelan analyst Eric Rothdeutsch said other potential investors are NEC, Fujitsu, SGS Thompson or Motorola. While the IBM connection is valid, let's not forget that Prudential has a vested interest in AMD--remember how Edelstone used to promote AMD with sheer insanity, and he sill does at Morgan Stanley. Ibexx