Advanced Micro Devices Inc (AMD)

[mas]

Implications for AMD :-

1) Intel's price increases will slow down and AMD will vary theirs to maximise the profits from the parts they can produce.

2) Intel will not seriously challenge AMD on the high-end desktop until either 65nm Prescott, or Pentium-M or even Itanium 2 hit the desktop. 90nm Prescott will go down in history as one of the worst follow-up chips in history.

3) As I suggested previously AMD does not *need* 90nm *now* but it sure will help margins, fab output, profits and eventually clock rate and ultimately the stock price !

In conclusion AMD gets to live and prosper through to Fab 36 and K9, a mighty achievement considering its size and wealth against the 'behometh' 'big dog' competitor. Hats off to Hector and his boys and girls.