Advanced Micro Devices Inc (AMD)

[bobs10]

Ok, so you see this as more of a supply thing than a demand thing. My feeling is that a decision was made to evenly ramp 90 nm over 05, something Jerry wasn't too happy with, probably in an attempt to better match supply and demand (not create any bubbles). However, I doubt the plan will work. What we may be now seeing is the first glimpses of an AMD inability to supply the market that may exist all next year.

It looks like AMD is trying shift more production to 64 bit chips, but there are limits as to how much of this AMD can do. Next quarter is usually slower than q4 and q2 slower than q1 so there should be some respite, but if MSFT comes out with its' 64b O/Ses in March the respite may prove ephemeral.

On another subject, considering the huge move yesterday, it's kind of surprising the way the stock is holding up today. Especially the relative strength with INTC. The price adjustment everyone has been calling/waiting for may also prove fleeting.