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

To: Pravin Kamdar who wrote (41213)	11/10/1998 8:00:00 PM
From: Maxwell	Read Replies (2) \| Respond to of 1573377

Hint on Gateway and Micron Deal: --------------------------------------------------------------------- Original posted by Albert A. 09:48am EST 10-Nov-98 Prudential Securities (H.MOSESMANN 414-395-2627) AMD AMD: EXCELLENT K6-2 DEMAND. MORE DESIGN-WINS IN THE PIPELINE. R E S E A R C H N O T E S November 10, 1998 Subject: Advanced Micro Devices (AMD-$25)--NYSE OPINION ========= Current: HOLD Analysts: Hans C. Mosesmann (415)395-2627 Ali Far (415)395-2626 RISK: High Alex Gauna (415)395-2624 12-Month Target Price: NA ====================================================================== Ind. Div.: - Yield: - Shares: 146.6mil. 52-Wk.Range: 31-12 ______________________________________________________________________EPS FY Year P/E 1Q 2Q 3Q 4Q Actual 12/97 $ (0.15) $ 0.09 $ 0.07 $(0.22) $(0.09) Current 12/98 $ (0.70)E N/A $(0.39)A $(0.45)A $ 0.01A $ 0.14 E Prior 12/98 $ (0.81)E N/A $(0.39)A $(0.45)A $ 0.01A $ 0.03 E Current 12/99 $ 0.60E 41.7X Prior 12/99 $ 0.60E 41.7X ====================================================================== We are revising our fourth-quarter revenue and EPS estimates upward to $790 million and $0.14, from $740 million and $0.03 respectively. Our revisions are based on excellent demand the company is enjoying for its socket-7 compatible K6-2 processor. While we are maintaining our Hold recommendation for the stock due to extreme volatility of this name and transition issues in 1999 regarding the K7, we believe near-term K6-2 demand momentum and potential high visibility design-wins will be favorable for the stock. We believe both Intel and AMD are enjoying excellent demand for their respective processor offerings in the fourth-quarter. AMD's K6-2 offers compelling price performance for a socket-7 compatible solution (which is lower cost) ideal for the sub-$1K segment of the PC market. In our view, AMD is in position to ship 5 million K6 family processors in the fourth-quarter, with ASPs around $100 (plus or minus a few dollars). Our previous estimate was for approximately 4.5 million units at a $95 ASP. Design Win Focus May Well Provide More High Visibility Wins For The K6. We believe AMD has been working very hard all year to get a win at any of the direct model PC OEMs, such as Dell, Gateway, and Micron Electronics. While it is unlikely the company has had much success with Dell, we do believe AMD has made inroads at the other two. This is significant, given that these companies have been nearly exclusive Intel users in the past and points to continued use for K6 solutions through the first half of 1999. ____________________________________________________________________ These guys project that CPU revenue will be $500M in Q4. If other AMD business picks up we will see revenue well beyond $810M. Maxwell