Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: greg nus who wrote (31089)	4/6/1998 5:27:00 PM
From: Maverick	Read Replies (2) \| Respond to of 1580032

ADVANCED MICRO DEVICES INC. (AMD) 30 7/16 +1 7/8. With one more day to go before this maker of the K6 chip reports its Q1 results, shares are moving up on the hopes that much of the bad news associated with its production K6 problem is already out in the open. In the past couple of weeks, Wall Street has turned more favorable on the stock on the view that AMD has been successful in addressing its production yield problems. In fact, some firms suspect that AMD could become profitable again one to two quarters ahead of schedule. It was only one month ago that this chip maker surprised Wall Street again by warning that Q1 losses would wider than the losses it reported in Q4 and that revenues for Q1 would show a sequential decline as well. At the time, the stock was trading at under $22 3/4 and it temporarily dipped to $21 before bouncing back. Just last week, BA Robertson Stephens upgraded the stock from "market perform" to "buy" while Prudential Securities also raised its view on the chip maker from "hold" to "buy." This morning, the stock has been the beneficiary of an initial "buy" rating from Piper Jaffray which has allowed the stock to advance further, despite the fact that a loss of $0.25 a share is still expected to be reported tomorrow. Last year, AMD earned $0.09 a share on revenues of $552 million. In Q4 of 1997, it lost $0.09 a share on revenues of $613.17 million. Nonetheless, Piper Jaffray is optimistic that the yield problems are fixed and that low production costs should provide AMD to make further in-roads in the low-priced PC market. In addition, its 100 MHz platform is expected to provide performance advantage over Intel's Celeron chip. The firm has a 12-month price target of $40. By Briefing.com