AMD will continue to be fierce competition for Intel.
AMD had two main themes from the analyst meeting yesterday - (1) substantial cutbacks in head count and R & D and capital expenditures and (2)agressive attacks on existing and new markets (for AMD) where they main competitior will, once again, be Intel. These areas include CPU server markets, where Intel has gone from 0 to 87% market share since 1994, handheld & wireless which Intel has been growing extensively - StrongARM/XScale/Flash - for 3 or 4 years.
And of course, AMD outlined a broad and deep dreams of adavnced technology development - through 90, 65 and 45 nM processes and 300 mm wafer conversion (all dreams).
What all analysts failed to compute was the following:
AMD is currenlty suffering massive losses and market share losses to Intel - but AMD is going to decrease their expenses by some $350 million while at the same time attacking Intel in Intel's strongest and most entrenched markets.
Just how in the name of common sense can AMD bold faced announce stepped up attacks on Intel and Intel's markets while massively scaling back their (AMD's) expenses and headcount while they are already losing money and market share with their current expenses - before massive cutbacks?
AMD has simply put forth more wild dreams and fanciful expectations that fly in the face of their current economic and technological malaise. Their attack plans fly on the face of the cutbacks they are simutaneously advertising.
AMD is acting like a cornered rat, lunging and attacking while their food supply is dwindling to nothing.
-SZ
