Advanced Micro Devices Inc (AMD)

[alaskaman]

Is AMD under valued or over valued? Since June 8th it looks like the share price is down about 28% yet the P/E ratio is still in the nose bleed altitude today of about 46 from it's last quarters earnings of 25 cents per share. Intel's Price to Earnings ratio is also high but a more rational level of around 20. P/E ratios in and of themselves don't mean squat but it's interesting to see the the difference in the 2 companies. Looks like for AMD to keep this more than double P/E it's going to have to really slaughter Intel's market share soon or it's stock could go way down to around 4 or 5. Without an increase in earning that would give it a P/E ratio of 20 at a stock price of 5....I think.

Just mentioned this as I read a post here saying he thought the stock would go up 4 or 5 dollars soon....and I'm just wondering what's stopping it from going down to 4 or 5 a share.