Advanced Micro Devices Inc (AMD)

[Tiger64]

Personally, I think we need to start looking at AMD as a longer term investment rather than a quarter to quarter thing...its taken me almost a year to figure this out...without the increased capacity of the new fab we are kidding ourselves...maybe AMD might be able to do a little better in their Opteron and A64 sales over the fourth quarter but their flash sales will probably be close to break even...unless they figure out a way to pump out more high quality processors (A64's) at higher ASP's which I think they will do this stock is going to be trading in the $13-16 range...what we have to understand is that AMD is using all this revenue to improve their infrastructure for longterm viability, 06 and beyond...in essence the ability of AMD to remove Intel from using pricing to drive AMD out of the market...I think everyone has been a little diappointed in AMD because they couldn't pump out enough A64's during 04...the Opteron because of its higher price point made sense at 130nm but the A64 will catch on much faster once AMD can drop prices on their 90nm A64...sweetspot between $100-$300 price range...AMD has the capability for awhile to fuel their engine without too many disruptions...so kick back... grab your popcorn...and enjoy the show because 05 is going to be far more interesting than 04...;>)