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

To: lanac who wrote (51790)	4/1/1998 10:34:00 AM
From: Burt Masnick	Respond to of 186894

It's quite a leap to say that AMD chips are "better" than Intel's chips. What they might be is cheaper (that is AMD's stated way of competing with Intel, at least up to now). If cheaper is better, than a Geo Prizm is better than a Honda Accord is better than a Mercedes 300 Class. I would go in the other direction and I believe that AMD is about to try to do that too. My son, who is about to get his MBA at an Ivy League business school, says that your business plan should never be to compete on price alone. It is almost always a losing business model. AMD is a clone producer trying to get out of the trap of being a clone producer. They are making some design efforts to leapfrog Intel in certain areas. They have to be absolutely perfect in their execution (not their strong suit in the recent past) as they overcome their financial, manufacturing and marketing hurdles. Not that Intel doesn't have to execute very well to prosper and grow, but they are not dancing anywhere near as close to the edge as AMD. Some like to live close to the edge and it certainly is exciting to bet on a long shot. The AMD fans will claim that it's a slam dunk that AMD will execute well. Time will tell. As a famous sportswriter of the 30s said, "The race is not always to the swift, but that's usually the way to bet". Best regards and good investing, Burt Oh, by the way, Fortune magazine just gave the AMD board of directors the dubious distinction of being the board with the least demonstrated interest in improving stockholder value (against some really impressive competition).