Replies to post #69288 on Advanced Micro Devices Inc (AMD)

[Michael Moy]

I was commenting more on the chart pattern than the price. Note that the move higher has been made (for the most part) with a lot of small steps. Then note the higher angle of attack recently. That's kind of the sign for a parabolic move which is a caution flag.

I thinking about an X2 desktop if only those Core Duo chips
could knock down the X2 prices.

[alan81]

The problem with AMD earnings...
is they are going to want to spend them to stay competitive. AMD may be well set-up now to earn $2/share, but will they... or will they hire a few more folks, increase R&D, increase capital spending and hence subsequent depreciation?
Or, is AMD going to use their profits to retire debt, do stock buy-backs, or provide a dividend?.. or just build a cash warchest? I suspect they will spend a fair amount of that potential profit to stay competitive.
--Alan