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

To: Jim McMannis who wrote (45945)	1/14/1999 1:35:00 PM
From: Tenchusatsu	Respond to of 1573219

<Fab 25 wafer starts in qtr 1 will increase to 60,000 for 40,000 in qtr. 4 but volume will stay at 5.5 million. Hummm, something tells me AMD will produce more than 5.5 million...> No, it just means that AMD is shifting towards CPU's with larger die sizes like the K6-3. AMD could also be increasing wafer starts to try and offset the lower yields that may result from shifting their product mix to higher speeds like 400 MHz. In other words, it's just like I predicted. AMD wants to move out of the bargain-basement cellar. Let Intel's Celeron and Cyrix's M-whatever fight it out in the low-end. AMD will try and migrate up to the mid-tier. Will it work? Well, there's no doubt in my mind that ASP will go up this quarter as a result, giving ole Jerry Sanders another reason to yap once again. But production costs will also go up, and profitability may only meet, not beat expectations. I was personally burned rather bad thanks to not selling before yesterday's announcement. (Yeah, I know, I didn't put my money where my mouth was, but hey, I live and learn.) But if AMD dips into the teens, I'll jump back in and try and recover my loss. Tenchusatsu