Advanced Micro Devices Inc (AMD)

[bobs10]

Klaus, I don´t see these volume constraints at all at the current sales volume (also keeping seasonality in mind). I trust AMD´s estimates there.

Me...

The coming price adjustments should give us some indication about supply. At first any shortages should start showing up in specific products (hardest to make) and later move to the general line. Logically AMD will schedule manufacturing so that the most profitable products are guaranteed and the others are produced as resources free up.

Personally, I would love it if the recent process changes plus the H1 inventory carryover are enough to tide AMD over until fab36 comes online, but given the near steady stream of design/distributor wins I have my doubts. It seems A lot will hinge on Turion's success.

In any case if scarcity-manufacturing problems don't dominate AMD's production it will probably be because AMD couldn't guarantee the OEM's/distributors needs forcing them into mother INTC's waiting claws. Of course the determination of the veracity of that opinion will have to wait until AMD has enough capacity to test just what the unencumbered demand for AMD's processors really is.