Intel Corp (INTC)

[Elmer Phud]

Spokeshave -

That IMO is a poor hedge.

You're right, it's not a very sophisticated hedge. It just that if Hammer is ever released and does well then my AMD will do well. If Hammer flops then my INTC will benefit.

As for your statement that AMD pretty much tracks INTC, well another perspective is that AMD only makes money when Intel is capacity constrained. While Hammer is looking more and more like it might be an oversized, under performing, poor yielding disappointment, Intel now has no reasonable limits on capacity. Prescott will be a major die size reduction and that plus the new 300mm fabs mean AMD will never again see Intel capacity constrained. Hammer must be everything AMD claims it to be or else. I don't expect these shares to track much longer. AMD will have more upside potential if Hammer delivers but it must live up to all the hype and not just on foils and datasheets. It must be a manufacturable product. A very difficult task for AMD.

EP