Advanced Micro Devices Inc (AMD)

[bobs10]

I think you misunderstood what I said. In order to have a price war a company has to have the capacity to back up its’ lowered prices. Otherwise the other party just lets you sell all your stuff at the lowered prices and then it supplies the entire market at even higher prices. This is especially evident in AMD/INTC's case where market share is so disproportionate. INTC doesn’t fear AMD because they know AMD can’t threaten their prices. That all changes when fab36 comes online. At that time AMD will finally have enough capacity to affect INTC pricing.

For the time being AMD could pick certain markets, such as servers, and do some damage, but that would require changing the product balance and INTC would react accordingly. Hector seems to be a pretty cool bird. I’m pretty sure he is more than willing to strengthen AMD’s finances and put off the inevitable war until he has his ducks lined up.