Analysts See AMD Besting Intel At Weathering Economic Falloff

[LXi]

Analyst Joe Osha at Merrill Lynch & Co. said AMD is a more attractive investment than Intel this year because AMD is focused on the consumer and low-end markets, which are doing well, especially in Asia. And AMD's failure to make inroads into the more lucrative server markets and U.S. corporate PCs is actually helping it now that demand in those markets is falling off.

http://public.wsj.com/sn/y/SB984175018751887400.html

 

[Midnight Rambler]

What Joe fails to say is that 40% of AMD's business is in FLASH. The memory market has been creamed worse than the CPU market. Intel and Merrill don't get along anymore, not since the days of their analyst Tom Kurlak. Osha is not much better. I am a Merrill client and they have been heavily biased against Intel for quite some time. So is Salomon Smith Barney's analyst, who continues to maintain that Intel will be cutting capital spending, saying he has this info "from the highest levels of the company." Craig Barrett specifically addressed this analyst's (Jonathan Joseph) at his IDF speech, saying "he obviously didn't go high enough", ie. he did not get this from him (Barrett), and being CEO he would be the "highest level of the company". Further proof that Osha is a bit out of it is his saying that AMD has been doing real well in the low-end segment of PC market. When in fact, AMD is just now penetrating that market - it was no fault of AMD's, there just was not an integrated (w/graphics) chipset solution available for AMD until recently. That is a necessity to garner the low end.

Ashok Kumar is a better analyst to follow, he's predicting tough times for both. He revised his earnings numbers 4 days before the warning announcement, and with Reg.D banning insider info now, it's real hard to make such accurate calls.

 

[LXi]

You got a point there, but I thought by "low-end", Osha meant the consumer market, opposed to the higher-end server/workstation market, AMD has been doing very well.

 

[sandorski]

AMD probably will fair better. The reason is simple enough, AMD can do very well selling cpu's on the lowend of the pricing scale, Intel can/will not. Many people/companies will change their buying habits, which will be based on price more than brand familiarity, this will work in AMD's favour. AMD may have problems though, time will tell.

 

[Verygreedy]

Stock price is still low as are all nasdaq stocks.. should have bought AMD at 14 a couple months ago though.. I knew it would double.. darn!