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: kash johal who wrote (58773)	5/19/1999 2:57:00 PM
From: Scumbria	Respond to of 1572190

Kash, However, not to get SCUMBRIA too exited...it is perfectly LEGAL for intel to sell chips at a loss as long as they sell them above MARGINAL cost. Your legal opinion is noted, and filed away appropriately. Scumbria

To: kash johal who wrote (58773)	5/19/1999 3:02:00 PM
From: Kevin K. Spurway	Respond to of 1572190

Kash, Bravo, excellent post. Re: "And they have managed this incredible balancing act with lotsa help from its competition. Howvever if Intel falters or if AMD finally performs there could be huge pressure in its stock price as even a 5-10% drop in ASPs has devastating impact on the bottom line." The balancing act gets even trickier as .18u creates a massive amount of additional capacity just when AMD comes on line with Dresden. Historically the capacity increases from moving to smaller feature sizes have been offset by market growth and increased transistor counts. Unfortunately, Intel won't move to a much more sophisticated core design until next year and market growth is unlikely to cover all that excess capacity. Kevin