Advanced Micro Devices Inc (AMD)

[bobs10]

You still don't get it; this is the new AMD. As far as I can tell INTC has its hands full just copying AMD anymore. That's not likely to change for at least the next year. After that the old coercion and monetary tactics might work, but given the technological lead AMD has now, it's going golden, at least for the time being. The only question is how many karats the gold is made of.

I'll grant you that in the short run AMD's ability to take market share is limited by its manufacturing capacity, but by the end of next year all that starts to change. At that time INTC better have better answers then than they do now or INTC is going to feel pain like it hasn't since the memory business days.

In the meantime having AMD running at full tilt is going to produce margins the company has never seen before. Given the recent info about Opteron sales in q1 I wouldn't be surprised if ASP's have gone up by $10 in q2. Money could now be much less of a problem for AMD; especially when flash is added into the mix.

Again, as far as I can tell the footing of both companies is becoming a lot more equal, which is something not talked about much, but should be a prime worry to INTC holders.

I'm sure the clowns, Barrett and Otellini, pray nightly that the market doesn't slow down. That would be much more of a problem for INTC than AMD, maybe resulting finally in the management clean up INTC desperately needs.