Advanced Micro Devices Inc (AMD)

[bobs10]

That 5 to 1 market advantage is a 2-way sword. Also, all that extra production capacity is nice when the market is expanding, but a killer when it isn't.

If the market really is slowing down AMD should be much better positioned than INTC. What it will mean for AMD is that there will be less pressure to outsource. This in turn would imply that fab30 at 90nm will be running closer to capacity. Having a fixed cost business running at capacity is the way to maximize profits.

Of course there's still flash. I don't know but it feels like AMD has more capacity there, even with the move to greater density chips, than they have with processors. Also, everything I read indicates that mirror bit has a substantial cost advantage which should translate to more business. In the NOR flash business AMD is the gorilla.