Advanced Micro Devices Inc (AMD)

[bobs10]

Of all the possibilities I think another Ruiz U-turn is the most probable. He will redfine what he means by Spansion being "independent" and "having access to capital markets" and will hope that growth in the CPU business and the start of production from the new fab will deflect the criticism of his decision (a) to sell Spansion below cost in a private deal or (b) keep it but run it down.

Me...

I don't think Hector ever gave up on flash. The problem has been the short-term effects caused by INTC. I don't think Hector will sell Spansion at a loss so that means no sale until Spansion turns a profit, probably for a couple of quarters. Even if a sale happens I expect AMD to retain control unless mirrorbit and Ornand flop and then it would be a give away.

This quarter should be interesting if mirrored flash continues to improve. ORNAND is the big question mark. For sure INTC isn't the competition as this is another area in which they're fading into the sunset after their Kamikaze attack on AMD. INTC won the battle but is losing the war.

Lots of questions still. I'm hoping Hector knows a lot more than I do and the news is good. Have to listen to what Hector has to say very carefully to get clues as to what he's really thinking.