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

To: JBoyd who wrote (34286)	7/11/1998 2:01:00 PM
From: Yousef	Respond to of 1571829

JBoyd, Re: " I've been reading the AMD threads on the SI for over a year now and it seems you are one of the few constants ..." My investing style is to understand the underlying technologies fundamental to the success of the company ... In IC process technology, Intel has a tremendous lead (2-3years) on AMD. This advantage in IC technology is why Intel yields are higher and their CPU's run at higher speeds. Re: "Just hoped that they could take a piece of the pie and earn a good return like they used to earn on the 386 and 486 chips. " AMD has actually done pretty well in increasing their CPU volume (now at 2.7M units/quarter) ... the problem is that AMD's IC process is high cost due to complicated local interconnect, low yields and lower volume of wafers (compared to Intel). Since Intel's IC process is higher performance, lower cost and higher yield, Intel can price their (AMD) comparable CPU's at lower margins and still be overall very profitable. Basically, AMD has been very, very poor at executing their business plan, IMHO. Make It So, Yousef