Advanced Micro Devices Inc (AMD)

[HailMary]

Keep in mind that the volume crossover for K8 over K7 is scheduled for late Q2. The mix changes drastically, starting now.

Hey I would love to see an ASP of $100 as the stock will probably reach the 50s and I have lots of stock, but I just think that road will be long and hard. I think we will see gradual increases in ASP over the next year (maybe $3-$4 per quarter), and not a drastic change. If flash continues to recover, AMD could still be looking at $.50 profit per quarter even with these modest gains in ASP.

I still think AMD is a better trading stock (the hype will make it run far beyond the fundamentals), although a long term investment at this point would probably do pretty well.

I both trade and have a long term investment in AMD. I've held some shares since January 02. I have some trading shares I'm going to try to exit from sometime in Q1. I'm still hoping for $20+ on these. I'll then write more puts in the summer when AMD typically trades down. I'll probably hold my long term shares until Q4 04.