Advanced Micro Devices Inc (AMD)

[bobs10]

Thanks for the SB update.

I particularly like the reduction in “number of days inventory” of NOR flash.

One of the things I would like to know is what prices AMD got for the new flash capacity that came online in q1?

With the move to 110 nm and mirrored flash, costs should be dropping even as prices are rising/flattening.

http://biz.yahoo.com/rf/040402/column_stocks_outlook_3.html

Wall Street analysts are expecting the companies in the S&P 500 to post an average gain of 16.9 percent in their first-quarter operating earnings, according to Thomson First Call (News - Websites) . That number has risen steadily since the beginning of the year, when the consensus forecast was for a rise of 13.4 percent.

Me again...

The Cokes and other commodities did not grow at 16.9% in q1, which leaves the cyclicals and particularly the cyclicals that are in their growth period to carry the load. Both AMD and INTC should have done well with INTC compensating for lower ASP's by increasing volume while AMD maintained volume and increased ASP's.

The one thing that bothers me is the continuing reports of manufacturing problems with AMD64 products. I've seen this reported enough and by multiple sources that I don't write it off even though it seems to go against everything management has been saying. Personally, I'm inclined to believe that AMD has been carefully managing AMD64 availability to maintain prices. I see the recently released 2700+/2800+ as being nods to high end price resistance. I think most people are like me, waiting for 90nm chips and a MSFT OS before buying.