Advanced Micro Devices Inc (AMD)

[bobs10]

From SI, about analysts preference for AMD,TXN over INTC.

http://www.marketwatch.com/news/yhoo/story.asp?source=blq/yhoo&siteid=yhoo&dist=yhoo&gui...

Them...

Last Tuesday Wedbush Morgan cut its recommendation on the shares to "hold" from "buy" and also dropped its 12-month price target to $22 from $25. Unlike CSFB, which maintained earnings outlook, Wedbush cut its 2005 earnings per share forecast to $1.15 from $1.25.

"It appears that Advanced Micro Devices will be able to gain share in the second half of calendar year 2005, including with the previously 100 percent Intel customer Dell Computer for the first time," analyst David Wu told clients.

Wu said that AMD in 2006 would have the capacity to accommodate the volume requirements of the top PC original equipment manufacturers, meaning it could back design wins in 2005.

"This is the first time AMD has the capacity to seriously erode Intel's 80 percent-plus market share," Wu said.

Me...

Nice to see the design wins, but AMD is going to need the capacity before 06. Product demand is only going to get stronger as 05 progresses. I guess we'll have to wait for the fourth leg. Leg 1 being the k6, leg 2 the K7 and fab30, leg 3 the K8, and leg 4 will be the processor capacity problem resolution. INTC will still have the hyped "INTC inside" image, the money, and the marketing but the playing field should be a lot flatter with the capacity card taken out of the picture.