Replies to post #16337 on Advanced Micro Devices Inc (AMD)

[Elmer Phud]

Petz -

No, we don't know how many addional XPs AMD made in Q3 and put in inventory.

You're right. We don't know and Q3 is the only quarter where that might make sense, but still with their capacity and limited demand they shouldn't need to build inventory. Who are they saving them for? They can't build enough for the xmas rush? They only lose value as time passes and speeds go up.

[kpf]

petz

Talking about capacities, guess there is just one obvious strategy option for AMD, which is uptrading its product mix:

Next six months sweetspot-deliveries from Thoroughbred to Barton, following six months from Barton to A-64.

Which implies increasing ASP, decreasing deliveries into value segment. Which is a good thing, even if unit-shipments would be slightly lower than this year. I dont expect the latter, because of the additional cleanroom-space AMD has tooled. Guess that will allow to balance mss and uptrading.

Looks like Prescott-issues help a lil bit with it. You know, hunting a standing target for a while. ;-)

K.