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: Ahmad Sinno who wrote (56868)	4/30/1999 2:01:00 PM
From: Tenchusatsu	Read Replies (1) \| Respond to of 1578146

<What is the story on the K7 ?> The K7 is AMD's chance to match or beat the performance of Intel's latest-n-greatest, the Pentium III. Because Intel enjoys very nice profit margins on the Pentium III, AMD wants to enter this domain, sell for less than the Pentium III and make a handsome ransom in the process. Their hopes for pulling this off rests on the K7. <Is release date still June and is that for volume shipping?> Release date is still June. However, that depends on your definition of "volume." Initial volumes of K7 are likely going to be just a trickle (on the order of tens of thousands) for the first few months after the K7 release. The real volumes (on the order of millions) won't come until AMD's new Fab 30 in Dresden, Germany, comes on-line around the end of this year or beginning of next. <What are the probability of this happening ?> Release date or volume? Release date, well, AMD can always release in June and claim they met their promise, but what's the point if only ten people in the world can get their hands on a K7 by then? Volumes, it depends on whether AMD can shake their history and reputation for manufacturing problems. <Also, I read that IBM is using K6-2, anyway of knowing volume ?> Yep. Total volumes of K6-2 this quarter are likely going to be around 4.5 million coming out of AMD, and probably 500,000 K6-III's. I don't know how many of those go to IBM. <WHat would happen if Intel cut prices by ~20%, when K7 is released ? How would that effect AMD stock ?> Intel could very well do that, cut prices drastically on their bread-n-butter Pentium III. It's unclear how this will affect AMD stock, because in my opinion, AMD stock is more dependent on AMD's ability to manufacture, not Intel's willingness to drop prices. Tenchusatsu