Advanced Micro Devices Inc (AMD)

[kpf]

Steve

"Intel is increasing margins"

We will know if that is the case in just couple of hours.
I somewhat doubt GM are up, not only for the reason below.

"DELL is raising guidance"

Yes. Rewards for staying away from Opteron currently allow for pretty aggressive pricing by DELL, particularly in the Asia-Pacific region. That bodes well short-term. As i see prices coming down significantly this year anyway, it wont probably hurt Dell from a strategic viewpoint.

"I wouldn't write off Intel this year yet"

Sure. For Intel, this is no problem as well if trading down prices can be limited to the extent cost effects from 300mm/90nm will be kicking in within the next eighteen months or so.

"How can Intel hide these problems in the earnings report?"

For those focussing on financials, there is nothing that Intel would need to hide for a while. Everything will look unexciting, but not scary for couple of quarters.
Except for those focussing on growth-rate, that is.

K.