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: Katherine Derbyshire who wrote (31487)	4/9/1998 1:12:00 AM
From: greg nus	Read Replies (2) \| Respond to of 1571899

Karthrine, of more concern is how AMD has gone from a quartly B.O.P. of $550 million to $700 million, without an marginal increase in revenue. Assuming the Asian crisis keeps AMD other non CPU product lines flat or revenue neutral for the rest of 98, and continuing to assume AMD will cook up 12 million cpu's sanders is targeting during 1998 @ an ASP of $120.00. The first 5.8 million CPU chips go to cover the increased overhead of $700 million annualy. The new bop of $2.8 billion up from $2.1 billion for 97. The next 2 million Cpu chip go to cover the incremental chip cost, wafer expenses and labor costs, which leaves the last 4.2 million CPU chips free to generate $500,000,000.00 in profits to divey up amongst 144,000,000 shares leaving $3.47 a share @ pe. 21 should put AMD stock @ 73 bucks by year end. Assuming they can make 12 million and sell them for $120.00. Is the $20 incremental chip cost reasonable for the .25u geometry? and can AMD finally mass produce these 300's like a slot machine spits nickles. Like they did with the 386 and then the 486! Opinions please.