Advanced Micro Devices Inc (AMD)

[bobs10]

you...

That was a curious statement given that AMD depleted an already depleted inventory by another $50 million. No doubt some of the bashers will claim that AMD is writing down the inventory to reflect lower pricing. But I'd be surprised if much of the inventory is carried as packaged product. I suspect most is untested and unpackaged die. Which is valued differently if I am not mistaken.

me...

Actually, inventory is valued at the lower of cost or market. Personally I don't think AMD has that much inventory, and what they have is probably mostly new stuff, with a lot WIP.

As I said, from my point of view that comment was more of a signal from AMD that it didn't want to get into a price war now than a statement about actual capacity. Whether INTC was listening or has other plans is another matter.