Replies to post #2334 on Intel Corp (INTC)

[wbmw]

Elmer, Re: What concerns me is AMD's inability to accurately forecast. If they don't achieve the 20% improvement they predict where will that leave their cash position at the end of Q4? Will that cost them another $100-120 Million if the 20% doesn't materialize?

It seems their 20% is based off of flash and CPU improvements, yet SubZero tells us that MirrorBit is still suffering from reliability issues, while AMD still hasn't launched their 2600+ Athlons in high volume. And it's already half way through the quarter. I'm wondering when that 20% plans on kicking in. If AMD has to warn before the end of the quarter, after having reaffirmed guidance now, their stock will be back to $3 pretty fast.

wbmw

[Tenchu]

Elmer, <What concerns me is AMD's inability to accurately forecast.>

I'm sure they realize this. Even Hector mentioned how exposed AMD is to wild swings in their customers' purchasing patterns. That's what happens when your volumes are so low, I guess.

It's also why Hector is restructuring AMD. Jerry was so focused on getting 30% market share that he ignored the problems associated with not being there. Well, actually he knew about the problems, but instead of dealing with them, his solution was to escape them via brute force growth. Hence the "Virtual Gorilla" strategy that failed time and time again.

Seems like Hector is taking a more conservative approach and remaking AMD to be a small but effective and cost-efficient player in the market. It'll be interesting to watch what happens to Sanders' baby.

Tenchu