Advanced Micro Devices Inc (AMD)

[sgolds]

Tiger, new product held in inventory is shown on the books as inventory at the expected sales price. (The cost of inventory is booked in the quarter that it is incurred.) This is why it is so bad when inventory gets too high - when the company has to cut price to move the parts then they suddenly book a large inventory loss.

I am sure that AMD has been stockpiling to some extent, all semiconductor companies have to do that to insure a smooth supply of product. The trick is to manage inventory so it all can be sold at the desired price within a reasonable amount of time.