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

To: exhon2004 who wrote (68831)	11/20/1998 11:43:00 AM
From: Paul Engel	Read Replies (1) \| Respond to of 186894

Greg - Re: " How is AMD ever going to make more than .01/share with Intel accelerating it's price cuts? " The high volumes that allow Intel to reduce costs also can work in favor of AMD. As AMD increases their K6 volume - assuming their volume rises due to increased demand - their fixed costs are spread over a larger number of wafers and hence, CPUs. Thus, AMD's cost/CPUwill come down as well. The larger issue is, of course, if Intel's devices take away demand from AMD. In a flat market - or a slowly growing one - that would be true. However, Intel claims demand for the CPUS exceeds their current ability to manufacture, so demand for AMD's CPUs should rise as a "default". How long this situation continues is anybody's guess, but in the short term, AMD will be making profits. But Intel will be back to making "insanely great" profits. Paul