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

To: kash johal who wrote (41280)	11/11/1998 8:18:00 PM
From: Jim McMannis	Respond to of 1571762

AMD and Intel investors, This must be the good news... Blue skies for chip industry Trade group expects 9.1% growth in 1999 By Tiare Rath, CBS MarketWatch Last Update: 6:07 PM ET Nov 11, 1998 Tech Report SAN JOSE, Calif. (CBS.MW) -- Some of the most beat-up areas of the semiconductor industry will revitalize the struggling sector and fuel a 43 percent growth rate over the next three years, an industry group reported Wednesday. Coming off a dismal year, the Semiconductor Industry Association said chip manufacturers should see sales growth of 9.1 percent in 1999. While that won't be enough to make up for 1998 losses, the group said it will lead to growth through the early part of the millennium. In 2000, the chip business should grow by 15.2 percent, with an 18.2 percent increase expected the year after that. The Semiconductor Industry Association is a San Jose, Calif.-based trade association representing the computer chip industry. The organization releases its closely-watched industry forecasts twice every year. The association projected the semiconductor market in 1998 will total $122 billion, off 11 percent from last year. In 1999, however, the industry predicted sales will be $133.4 billion. "The underlying fundamentals of the semiconductor business are strong," said Steven Appleton, a board member of the association and chairman of Micron Technology. "There is no question this industry will continue to drive the world economy in technology advancements and value added to raw materials," he said. The Semiconductor Industry Association's outlook could lift shares Thursday of chip names like Intel (INTC), Advanced Micro Devices (AMD), and Micron Technology (MU). Those stocks were on fire Wednesday as Intel projected stronger-than-expected revenue in its fourth quarter. See related story. The Americas market, expected to be down 11 percent in 1998 from 1997, will rise 9.1 percent in 1999, the Semiconductor Industry Association. The struggling Asia-Pacific region will show an 8.1 percent decline in sales but will bounce back with 12 percent growth and is expected to take over Europe as the second-largest semiconductor region in 2001. Japan will continue to be a weak market, the group predicted. Sales are expected to fall 21 percent in 1998 and grow 4.5 percent in 1999. European sales will fall 2.2 percent in 1998 and rise 10.3 percent in 1999. Over the past two years, semiconductor companies have been whip-sawed as the economic slowdown in Asia hampered demand for their products and vicious price wars on chips and memory products cut into profits. Memory, microprocessors to lead The association predicted three sectors -- memory chips, microprocessors and digital signal processors -- will lead the 1999 rebound. Memory chips and microprocessors have been two of the worst-performing sectors this year. Two parts of the chip market that suffered heavy losses this year -- analog and discretes -- will see slower turnarounds but will still post growth. While memory chip sales are expected to fall 25.7 percent in 1998 to $21.8 billion this year, sales will rise 18 percent in 1999, the SIA estimated. In 2000, the group projected revenue from memory chips will increase 23 percent and surge 28 percent in 2001. DRAM, micro devices and analogs Dynamic random access memory, or DRAM chips, whose sales have taken a beating in 1998 and will likely finish 34.8 percent lower than 1997, will have a "strong recovery," the forecast said. DRAM chips should grow 25 percent to $16 billion in 1999 from 1998 levels. During 2000, DRAM sales will rise 28 percent, and the market will rise 35 percent in 2001, the industry group reported. Micro devices are likely to finish the year down 3.1 percent with revenue of $46.3 billion but rise 9.4 percent in 1999. The sector should grow 16 percent and 18 percent in 2000 and 2001, respectively. Analogs will post slower growth in 1999 compared with other industry sectors. Analogs will decline 4.6 percent in 1998 with $18.9 billion in sales and will grow 7.7 percent in 1999. In 2000, the sector is expected to increase almost 16 percent in 2000 and grow again by 18 percent in 2001. Microprocessors will also show strength over a 1998 growth of 0.6 percent. In 1999, sales will rise 8.4 percent, and are expected to grow 16 percent in 2000 and nearly 18 percent in 2001.

To: kash johal who wrote (41280)	11/11/1998 9:01:00 PM
From: Tenchusatsu	Respond to of 1571762

<This is one of the most one sided articles I have ever read. Could have been written by some of the Intellafoons.> Yeah, you could argue that, but remember, the PC Magazine article was talking about professional and corporate PC's, which isn't AMD's focus as of now. Also, all the computers in the reviews that featured AMD processors were made by makers whom I've hardly ever heard of. The only name that I recognized out of the AMD computers was Unicent. None of the big names like Compaq, HP, or IBM had any AMD models in the PC Magazine review. That's one explanation of AMD's poor reviews in this article. <What's your guess on action tomorrow. Profit taking or new highs for Intel and short term highs dor AMD/NSM. The new SIA forecast is very bullish so we could have another great day tomorrow.> There's always going to be some profit-taking, but we could see higher support levels for Intel and AMD. (I don't follow NSM.) However, I don't think Intel is going to extend further beyond the highs it already achieved today. However, AMD might go even higher in the next two weeks, barring any outside influences like those pesky analysts. Tenchusatsu