Advanced Micro Devices Inc (AMD)

[bobs10]

Ya, Jerry was right "volume is the vaccine". INTC knows this, and in the past has fought tooth and nail to keep AMD from gaining market share, or even increasing production in an expanding market.

As a result AMD is a lean and mean design/production machine where any extra sales fall almost completely to the bottom line. Variable costs (labor/materials are almost an after thought in comparison to fixed costs (R&D and P&E).

Despite INTC's best monopolistic efforts over the years to keep AMD in its place, Rambus, Itanium, P4, etc., these have all failed and AMD has just gotten stronger and stronger with each passing year.

While these failed policies, in the past, were minor inconveniences that barely affected the bottom line, the latest production/design problems are much more than chinks in the armor. It appears that for the first time ever; AMD not only has the best-designed processors, but also the best production processes. For the first time INTC is being exposed, in all its glory, to the world as the bumbling idiot it has become and all the money and marketing might in the world isn't going to be able to deny AMD.

If INTC doesn't get its’ act together soon the damage is going to become permanent. Once AMD starts taking sales away a host of other problems will start to beset INTC, not the least of which is what to do with all those shiny new fabs. The tide is turning, maybe by this time next year AMD will have INTC on the run?