Advanced Micro Devices Inc (AMD)

[bobs10]

You can´t really draw any conclusions from this data about AMD´s total CPU shipments.


Me...

We'll see, but I doubt AMD would be going to it's full court press in just the U.S. This is just the beginning of the game. What's more important is OEM penetration and we'll have to wait a bit longer for those numbers.

Anyway, the main point about SOI being an asset instead of a liability seems to be gaining more validity as AMD seems to be pulling huge quantities of processors out of a fab that never produced anywhere near the total processors now hitting the market. And it's not all due to 90nm either. Something else is going on.

It's going to be interesting viewing INTC's inventory at the end of q4. Contrary to what I expected, INTC clearly is being forced to play AMD's game and fab36 production hasn't even started to hit the market yet. INTC usually knows pretty well a quarter in advance what its' numbers are going to be so I doubt too much of a hit to margins in q4, but next year should be very interesting. If INTC has the sort of problems with 65nm it had with 90nm the floor is going to fall out from under margins.

So far I have very good feelings about AMD's 90nm process, while INTC's 65nm remains a question mark. To me it looks like INTC is going to need a very viable 65nm process if it has any hope of retaining its' margins next year.

This is not slow-pitch AMD is playing anymore. And so far this is just batting practice.