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: gnuman who wrote (52287)	3/10/1999 3:39:00 PM
From: Paul Engel	Respond to of 1577984

Gene - Re: " AMD to supply chips for Chinese Set-Top " AMD "aims" to supply these chips: "''Set-top boxes and low-end PCs are nothing new,'' said one official of U.S. microchip maker Advanced Micro Devices (AMD) (NYSE:AMD - news), which aims to supply chips for Venus devices." Paul

To: gnuman who wrote (52287)	3/10/1999 3:44:00 PM
From: Paul Engel	Respond to of 1577984

Gene - Do you like the BLUES ? " Hardware stocks share AMD blues " "You're looking at a company that has struggled with yields for years and which is now facing the toughest pricing environment it's ever seen," S.G. Cowen analyst Drew Peck told the San Francisco Chronicle. "It's not a pretty picture.'' " Paul {============================" cbs.marketwatch.com Hardware stocks share AMD blues By Tom Murphy, CBS MarketWatch Last Update: 1:33 PM ET Mar 9, 1999 Silicon Stocks Chip stock index NEW YORK (CBS.MW) -- Hardware stocks slumped Tuesday after Advanced Micro Devices warned of a "significant" loss, rekindling fears of a broader slowdown for chip companies and computer makers. The Philadelphia Semiconductor Index tumbled 4 percent, giving back all of Monday's gain and more. The Nasdaq Computer Index lost 0.1 percent, the Goldman Sachs Hardware Index dropped 1.2 percent. AMD shares (AMD) slid 1 7/16 to 17 1/2, a drop of 7.6 percent. Earlier, they sank to 16 after the company's warning that it expects a "significant loss" for its first quarter due to problems with manufacturing yields. Nonetheless, AMD Chief Technical Officer Atiq Raza said "demand for our desktop and mobile products remains strong." See full story. AMD's two chief rivals in the microprocessor market also fell. Intel shares (INTC) dropped 4 5/16 to 115 5/16, National Semiconductor (NSM), which makes Cyrix microprocessors, slipped 3/16 to 11. Rambus (RMBS), an Intel supplier, fell 4 to 72 3/4; Texas Instruments (TXN) fell 5 3/4 to 99 1/4. Motorola (MOT) escaped the carnage, rising 3/8 to 71 3/8. Computer makers were mostly lower: Gateway (GTW) fell 1/16 to 71 5/16; Compaq (CPQ) fell 1 5/8 to 32 3/4; and Dell (DELL) was off 1 5/16 to 44 1/16. Hewlett-Packard (HWP) dropped 2 3/16 to 67 11/16, even after announcing plans for a new Internet strategy unit. See full story. Big Blue (IBM) bucked the downward trend, jumping 3 3/16 to 182 1/16. Same ol', same ol' For AMD, whose K6 processors outsold Intel's Pentium chips for desktop machines for the first time in January, the latest announcement summoned ugly memories. "You're looking at a company that has struggled with yields for years and which is now facing the toughest pricing environment it's ever seen," S.G. Cowen analyst Drew Peck told the San Francisco Chronicle. "It's not a pretty picture.'' About a month ago, AMD warned that pricing pressures on chips could lead to a loss for the quarter, and analysts surveyed by First Call predicted then that the company would lose about 9 cents a share. The company's latest announcement suggested the loss would be deeper than that, although AMD executives didn't provide any public guidance. AMD now plans to cut 300 jobs in a reorganization, a move that will lead to a charge against earnings. However, Raza said the yield problems have been resolved. "We plan to ship a minimum of 5 million units in the second quarter and believe we will meet our goal of shipping 20 [million] to 25 million microprocessors this year," he said. The next hurdle for AMD will be the introduction of its seventh-generation process, the K7. Raza said the chips are now in production and are expected to be introduced in June.