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

To: Scumbria who wrote (55369)	4/14/1999 12:15:00 AM
From: Gary Ng	Respond to of 1573682

Scumbria, Re: As far as I can tell, Compaq hasn't figured out which direction they are headed in the server business It is a hard decision. Of course they want to shake away from Intel and take all the profit in the fat business but on the other hand if they give up Intel based server business, it would mean disastreous result(financially). I see similar thing(short term) for AMD. Yes, K7 will be great but needs time to build up(the market). At the same time they have to do it in exchange of less K6 which is their only revenue stream. And what is worse, they don't have much cash left(which is borrowed already). From their 10K, the only funding source is now a credit line which is the most expensive one and not a normal business man would opt for unless it is absolutely necessary. It is equal to borrow from your credit card and invest in AMD. Gary