Intel Corp (INTC)

[alan81]

Sure, it will be depreciated like any other capital asset. My point being, the revenue is going up 10%, but the potential COGs could go up quite a bit more than that since they are making quite a bit more silicon to hit a small increase in revenue. They have said fab 30 depreciation is going to start rolling off as fab 36 increases, but wafer cost is only about 35% capital depreciation, the remaining 2/3 being materials and labor.
I suspect there will also be increases in R&D and marketing, which may have an impact. AMD really does not have too much room in their numbers for increases...
On revenue of $1.22B last quarter, AMD only netted about $100M of that. Revenue is expected to go up about $100m, but expenses could easily outstrip that number... and the expectation is for substantial profit growth.
--Alan