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: Tenchusatsu who wrote (39942)	10/23/1998 8:24:00 PM
From: Scumbria	Read Replies (1) \| Respond to of 1575207

It's just hard for me, as an investor, to see how this drastic price slashing leads to more profit when production is limited. I think the answer is very simple. Intel wants to eliminate the competition. Many on this thread have suggested that AMD is close to the edge of bankruptcy. By killing everybody's margins at the low end, Intel feels they will ultimately regain their monopoly. Please don't blame AMD for Intel's bad behavior. Scumbria

To: Tenchusatsu who wrote (39942)	10/23/1998 10:13:00 PM
From: kash johal	Read Replies (2) \| Respond to of 1575207

Tench, Intel is production limited allegedly. AMD is apparently yielding 160 good die per wafer-or it has been alleged. Lets assume number is 120 GDW. They have capacity for 60K wafers per month or 7M+ CPU's. AMD IS NOT CAPACITY CONSTRAINED. As their VP of sales said they are going to have a ROCKING good 4th quarter. With the 366/380/400 parts on their way they should see ASP's grow to at least $130 range. Remember majority of parts are 333 Mhz plus or $100 plus. They could have close to a BILLION dollar quarter. And do you know what as their volume increases COSTS GO DOWN. Look for record profits this quarter. That's the reason that SCUMBAG Engel has purchased AMD while TRASHING it at every turn. Intel on the other hand is fixated on blowing AMD up with the handicapped celerons. They are selling 450Mhz chips locked to 300 and 333 at lower prices in a vain attempt to kill of AMD. Their whole plan frankly is DUMB. They maximize their own profits and hurt AMD the most by shipping as many 400Mhz and over CPU's they can at over $200+. Instead they cripple their CPU's, and then sell them at much lower prices and speed grades). This INTEL strategy is called SHOOTING YOURSELF IN THE HEAD and is probably the best thing AMD has going for it. And then they come along and SLASH prices. I bet Jerry can't believe his luck. Regards, Kash.