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

To: Felix Appolonia who wrote (78454)	4/11/1999 3:23:00 PM
From: Diamond Jim	Read Replies (1) \| Respond to of 186894

Felix, that's why I just wrote this post: Message 8840473 I just don't see where AMD can meet any corporate goals. If the goals are to decrease Intel's profits while at the same time losing more and more money then they are doing great. But what can AMD's long range goals be, it has to be profit. How can they achieve this when the competition manufactures CPU's at a lower cost? You can't undersell a less expensive competitors product and win. There is no long run.

To: Felix Appolonia who wrote (78454)	4/11/1999 9:14:00 PM
From: Tenchusatsu	Read Replies (2) \| Respond to of 186894

Hello Felix. This should really be on the AMD thread, but since you asked, here's my take on AMD. To make a long story short, they were trying to increase their marketshare by setting their prices at levels they were hoping that Intel wouldn't touch. At the same time, they were going to make the real money by ramping up their processor speeds at an even faster rate than Intel so that they can play in the same high-margin ballpark as Intel's high-end and mainstream products. However, this two-pronged approach turned into a double-whammy. Intel answered AMD's low prices with low prices of their own. A pricing war began, and AMD seemed obsessed with keeping their newfound marketshare, no matter how deep the losses were going to get. At the same time, AMD also ran into problems trying to ramp up their processor speeds, meaning that they couldn't produce more than a handful of processors which were fast enough to compete against Intel's latest-n-greatest. AMD is now counting on their upcoming K7 processor to provide enough of a performance advantage over Intel's products to command a higher price. They're hoping that the K7 along with their K6-III produced in sufficient volumes will raise their average selling price and lift them out of the sea of red ink. As usual, this depends on flawless execution on a very aggressive plan, and as we all know, history is not on the side of AMD. As for the stock itself, AMD only split once way back in 1983. AMD is a very poor stock to hold long-term given that it has stayed between 10 and 40 for the past five years now. But it's an excellent stock to trade if you can correctly pick the highs and lows, and in fact, many investors have made a lot of money day-trading AMD stock. How does that quote go? "Buy on the hype, sell on the news?" Tenchusatsu