Intel Corp (INTC)

[wbmw]

Klaus, Re: Given your expectations, did you bet the farm on AMD?

No. I think there is a happy medium between ASPs, market demand, output capacity, and costs. I believe AMD will find a place close to this sweet spot, and that you can expect them to ramp the product and lower the price to the point where they can barely claim profitability. Even so, getting to that point has some very favorable upside for the stock, and more depending on the mindset of other investors. Always remember to consider how the market values a stock, rather than how you value a stock. I have a 1 year price target of $25-30. That would more than double the money I put into this investment.