Advanced Micro Devices Inc (AMD)

[facsnotfiction]

sgolds
when this rally first started and the stock moved above 8, I figured it was the beginning of a short covering rally. There were just under 39 million shares short in August, which means that something else is going on, rather than just a short covering rally. Some of the volume is likely because of more people willing to play AMD short term, but there is also the possibility that big money either knows something, or is making a large bet on AMD. If AMD were some how able to break even and give guidance for a profitable Q4, the stock could see the 20's in the current environment. I am not saying AMD will do that because they have disappointed before. Opteron is gaining traction, but I don't see it adding more than say 50 million to revenue in Q3. If demand is really picking up then AMD will be able to grow revenue more from rising ASP's. The jury is out until AMD reports, or until AMD gives guidance. My guess is that if AMD has good news they won't say anything until earnings come out in mid October. One thing that I have noticed in the past is that a certain percentage gain in revenues by Intel can point to a larger percentage gain in revenues from AMD. Just like when the sector has had hard times, things have been tougher on AMD in percentage terms.