<<
I think the way in which earnings were achieved speak the loudest for both companies(all Intel investors should be aware and if they aren't should familiarize themselves) >>
This sounds like one of the worn out records being played by a few Wall Street analysts. No doubt you are referring to the portion of their earnings which came from profits from selling equities, mostly shares of Micron, and specifically, $1.5B from the Micron sell, plus another $800M generated from the sales of other equities. Weeks ago Intel gave tons of guidance to the 'Street about this, so if you are implying that they are trying to mislead people with their earnings, that won't fly for even a millisecond. Besides, there is no other way for them to report income such as this, and it must be reported. Once royalties from VIA start flowing in, they will be included in quarterly earnings too, so I'm sure the trolls will be out for that too.
Anyhow, if you for one minute think this is some kind of weakness on Intel's part, you need some education on how all of the big blue chip companies operate. EVERY one of them generates some revenues from investment portfolios that the company holds. And it is a GOOD practice, esp. for shareholders. If a company like Intel has a huge amount of cash in reserves (and they do ...), it is much better to get a high ROI from equity investment, vs. collecting a measly few % from straight interest. Intel bought Micron shares at $15-20, and sold at $90+. That is at least a 400% ROI for Intel and its shareholders. Also, you should note that Intel held only 20-25M shares of Micron, while Texas Instruments had 58M shares. TI sold theirs too, and it will be in their earnings report(s) as well. MSFT, SUNW, CSCO, and many other large tech companies do the very same thing. And outside of tech, other large cap blue chips invest company cash reserves in a number of ways to maximize ROI for this cash, ex. GM, Ford, and GE all have financial divisions for this very purpose.
AMD would be doing the same thing ... IF they had the cash to do it, but it will take about 10-15 years worth of repeated successful earnings before they might be in a position to do so. AMD trolls need to take off their 'shades and look at the longterm performance of the company. If they did, they'd put their shades back on real quick, 'cause they have stunk it up for a long, long time. Having owned their stock for several years now, I am glad to see them turning around, but they are still a flea spec compared to Intel, and likely always will be (just compare market caps for starters).
<<
AMD is putting a dent into Intel's earnings >>
Yet another incorrect statement.
<<
Intel's ASP is falling while AMD's is rising at an incredible rate >>
I don't call a 10% increase in ASP incredible, and the reason for the increase is largely because AMD is reducing its price cutting in order to drive prices back up. You really need to read/listen to their conference call ...
But as I said before, margin is where it is at, and Intel is killing AMD here. Intel's margins hit new highs of 63-64%. AMD is nowhere even close ...
Facebook
Twitter