Advanced Micro Devices Inc (AMD)

[sgolds]

bobs10, I advised my wife to sell AMD rather than hold through earnings. She sold yesterday on the open and received a higher price than the previous day's close (sometimes it helps to have a little luck).

She had been holding AMD for several years, along with a few other technology stocks. AMD is the only one showing a strong gain for her during this period so I am relieved she can walk away with a few dollars profit.

No matter what the stock does after earnings.

However, if it takes a big dump, I may be back in...

Seriously, there are two big clouds hanging over AMD price right now:

1. Any runup due to Dell rumors will dissipate in the likely event this turns out to be only another of the annual Dell/Intel negotiations;

2. Intel seems to be hitting stride on 65nm; the market probably sees this as positive for AMD's process but history argues otherwise - the two processes are so different that Intel's success says nothing about the potential for AMD's success with this technology. Some examples:

180nm - Good for AMD, lousy for Intel
130nm - Good for Intel, lousy for AMD
90nm - Good for AMD, so-so for Intel.
65nm - Good for Intel, not known for AMD.

Considering that AMD is within striking distance of their all-time high (around 47, if I remember correctly) one has to consider AMD to be a high risk play at this time.