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.

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

To: dumbmoney who wrote (81591)	5/26/1999 12:42:00 AM
From: Gary Ng	Read Replies (1) \| Respond to of 186894

dumbmoney, Re: There is way too much capacity coming on line. It's suicide. Are you saying this in general(including Intel) or just for AMD ? If AMD believe that K7 will be a blockbuster item, they are doing the right thing though I believe they are not putting enough resource to make it an alternative platform(which is not related to how good the CPU itself will be). Gary

To: dumbmoney who wrote (81591)	5/26/1999 12:43:00 AM
From: Scumbria	Read Replies (1) \| Respond to of 186894

dumbmoney, if AMD wants to sell CPUs for $400 they should halt construction of the Dresden fab immediately. There is way too much capacity coming on line. It's suicide. I disagree. If K7 is as fast (MHz) as I believe it will be, there will be an undersupply of top of the line x86 processors. Scumbria

To: dumbmoney who wrote (81591)	5/26/1999 7:17:00 AM
From: GVTucker	Respond to of 186894

dumbmoney,RE:<<Scumbria, if AMD wants to sell CPUs for $400 they should halt construction of the Dresden fab immediately. There is way too much capacity coming on line. It's suicide.>> That is precisely the attitude that Intel faced pre-Pentium era. Intel was alone in predicting PC volume growth in the 90's, and embarked on a capacity expansion that many considered suicide. That's why you could buy Intel at 10x earnings a decade ago. The prescience is Andy Grove's greatest legacy. If AMD is to succeed, against the longest of odds, they must structure the firm assuming that they will succeed. That means that K7 will be a home run. If that is the case, the added capacity is a must. Will AMD win? Probably not. But if they don't add this capacity, they guarantee that they won't win. Might as well give it a shot.

To: dumbmoney who wrote (81591)	5/26/1999 10:32:00 AM
From: Tony Viola	Read Replies (2) \| Respond to of 186894

DM, Scumbria, if AMD wants to sell CPUs for $400 they should halt construction of the Dresden fab immediately. There is way too much capacity coming on line. It's suicide. No prob re excess capacity. Wait'll they run into the German vacation and work week policies when crunch time happens...6 weeks a year avg. and 35 - 37.5 hrs per week. You need to get those wafers out? I'm on vacation to Yosemite and Disneyland. Aufweidersein baby. Maybe one Dresden facility equals two Santa Claras? Tony