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

To: gnuman who wrote (63169)	8/23/1998 2:42:00 PM
From: Gary Ng	Read Replies (1) \| Respond to of 186894

Gene, Re: So in that light, it's hard for me to identify the stupidity. May be that is why you should feel comfortable about Intel :-) If what AMD is doing is the best they can(or you can think of), won't it be the reason that you can lock your INTC holdings into safe deposit and sleep well ? Gary

To: gnuman who wrote (63169)	8/23/1998 2:57:00 PM
From: Fred Fahmy	Read Replies (1) \| Respond to of 186894

Gene, I thought I had made it clear why I thought AMD's strategy was flawed. Taking a giant with deep pockets head-on and escalating a price war with a continued vow to remain 25% below Intel's pricing was/is "stupid" IMO.....and obviously so. It's also hard to reverse at this point as it may very well be too late to fix much of the financial damage already incurred. A more reasonable pricing strategy might have been/be to stay 10% below Intel. If your theories are right (that Compaq and others want to see AMD survive to keep Intel from getting abusive) then a 10% (or less) differential would have been plenty to get Compaq and others to sign up for some AMD chips. Second, AMD continues to focus all of their attention towards Intel. I think they need to watch their back door closer. After all, they are not really competing against Intel but rather are competing against Cyrix, etc. for the piece of the pie left over after Intel is done eating. This notion that Jerry has been promoting for years, i.e. that AMD is going to be the next Intel, is ridiculous but revealing of Jerry's mind frame. You asked me what I would do at this point.....I would be looking for a buyer with deeper pockets, better brand recognition, manufacturing capacity/capability, and strong management. You may consider this a cop out, but I honestly think it is the best/only long term chance AMD has of increasing value to its shareholders. FF