Advanced Micro Devices Inc (AMD)

[alan81]

Intel took a big ASP hit, tanking the market.
The word big is a bit subjective, but given that they hit the revenue target, but gross margins are down somewhere between 1% and 2%, out of 60%... I would say "small" rather than big. They also mentioned the asp decline was due to fewer notebook sales made up with more desktop and more "other" stuff.

They also delayed correction of their inventory "problem" by about a quarter. I think it was the surprise and suddenness of the change that caused the stock to tank. The numbers actually changes by just a small amount. I think the concern is more that bad news tends to follow bad news, and good news tends to follow good news. This earnings call was viewed as bad news, so the probability of more bad news is now higher. Much hinges on the next few announcements from Intel.
--Alan