Replies to post #17649 on Intel Corp (INTC)

[Tenchu]

Dan, Equalized for shares outstanding, AMD is at priced at $16 and Intel is priced at $422 while having about a 4 to 1 market share advantage.

You're right, Dan. Both AMD and INTC are fairly valued. ;-)

Of course, I can't wait to see what "fair valuation" means for stocks as interest rates rise. Perhaps we should all pray for another 2000-like bubble. Just remember to sell when you've made yours.

Tenchu

[The Duke of URL]

You have a remarkable ability to diagnose in detail things that really don't friggin' matter.

[alan81]

minor stuff?
Dan said: plus some other stuff, which is of minor import to either company
Sure indicates you ought to stay out of Intel...
For Q1 at Intel...
uP revenue is $6,898m (73%), flash is $578m(6%), and the minor other stuff is $1,958M(21%), total revenue is $9,434M.
AMD Q1 revenue is $1,226, or smaller than the "other" category for Intel.
you are correct that Intel P/S is much higher than AMD at about 4.7 vs.AMD holding in there at 1.28. Less than 1.5 is usually considered undervalued, so AMD definitely gets points there. S&P average is about 3 while the semi average is closer to 5... so Intel is about right on this metric while AMD is very low. I wonder why that is? Oh Yeah, it's that profit thing.
--Alan

[imho]

Dan3,

Intel and AMD both make flash and CPUs (plus some other stuff, which is of minor import to either company.

Intel and AMD have about equal shares of the flash market.

Intel has 4 times the share AMD does in the CPU market.

Intel stock price (market cap) is priced 26 times as high as AMD's stock price.

ROTFLMAO

First, AMD owns 6/10 of Spansion. So Intel "owns" a lot more of the flash market share than AMD. Stop bending the truth.

But why stop here. Intel has higher revenues, higher margins, higher earnings, more cash, less debt, more market share, better brand, sells more chipsets, sells more communications chips, sells motherboards and on and on and on.

You see Danny boy, Intels is better than AMD in a lot more than 26 different areas of comparison. So it is no surprise it should be 26 times more expensive.

Equalized for shares outstanding, Intel is priced at $422 and AMD is priced at $16 while Intel holds about a 4 to 1 market share advantage.

Well lets apply your "logic" to a random statistic. PE ratios. OK.

Let's see, AMD has a trailing PE of 209. Now "Equalized" for Intel's trailing earnings of 1.25, we have a price of $261. Wow, Intel stock is selling at a huge discount, DON'T YOU THINK?

Your are a funny guy <g>

IMHO