Share price convergence AMD/Intel

[Viditor]

Somewhat OT, but for those keeping track...yesterday AMD's closing price overtook and passed Intel's.
This means very little, just an interesting factoid that hasn't happened for quite awhile.

 

[Aenslead]

Well, news that they are on shortage due to extended deman are always good news for the stockholders...

That means product's selling, and investment is comming... so good stuff.

Intel, after all, is numero uno thanks to Dell and notebook processors. For elsereason, AMD stands on top.

 

[imported_michaelpatrick33]

That is interesting until we look at the market caps for each company then it becomes a rather ludicrous comparison even in a symbolic sense. 155billion to 8billion. LOL

 

[Viditor]

Actually, one of the major reasons for the recent increase in share price for AMD is an article that came out in Barron's last weekend...

Barrons article text
SATURDAY, SEPTEMBER 24, 2005 6:49 a.m. EDT

THE BOTTOM LINE

Once AMD spins off its flash business, the mounting profitability of its microprocessor operation will come into full view. In two years, the stock could be near $50.

On AMD's Menu: Eating Intel's Lunch
By RHONDA BRAMMER

THERE ARE A BUNCH OF REASONS WHY you might be tempted to sell Advanced Micro Devices.

Not the least of them is that the stock of this plucky upstart, No. 2 to mighty Intel in microprocessors, has run from 7 and change a little over three years ago when we did our first feature on the company to a shade under $25 and is still around 23. Taking a profit is usually not a bad thing to do.

Or perhaps you're worried that demand for personal computers, which has been robust for a spell now, just may -- in spite of what upbeat industry pundits predict -- be ready to roll over, and that obviously would not be good news for the chip makers generally.

Or, understandably, you might be concerned that AMD's flash-memory business, which accounts for about 40% of total sales, is capital-intensive and losing a ton of money.

But this time, it truly pays to resist temptation.

Pure and simple, the prospects for Advanced Micro Devices have never been brighter. While semiconductor stocks are always subject to bouts of vertigo and AMD would suffer with the rest if, say, PC sales started to flag, it would still likely fare better than the competition because it's gaining market share in high-end processors at a dazzling pace.



Edit: AMD closed Friday at $25.20...high for the day was $25.75

 

[Hyperlite]

Originally posted by: Viditor
Actually, one of the major reasons for the recent increase in share price for AMD is an article that came out in Barron's last weekend...

Barrons article text
SATURDAY, SEPTEMBER 24, 2005 6:49 a.m. EDT

THE BOTTOM LINE

Once AMD spins off its flash business, the mounting profitability of its microprocessor operation will come into full view. In two years, the stock could be near $50.

On AMD's Menu: Eating Intel's Lunch
By RHONDA BRAMMER

THERE ARE A BUNCH OF REASONS WHY you might be tempted to sell Advanced Micro Devices.

Not the least of them is that the stock of this plucky upstart, No. 2 to mighty Intel in microprocessors, has run from 7 and change a little over three years ago when we did our first feature on the company to a shade under $25 and is still around 23. Taking a profit is usually not a bad thing to do.

Or perhaps you're worried that demand for personal computers, which has been robust for a spell now, just may -- in spite of what upbeat industry pundits predict -- be ready to roll over, and that obviously would not be good news for the chip makers generally.

Or, understandably, you might be concerned that AMD's flash-memory business, which accounts for about 40% of total sales, is capital-intensive and losing a ton of money.

But this time, it truly pays to resist temptation.

Pure and simple, the prospects for Advanced Micro Devices have never been brighter. While semiconductor stocks are always subject to bouts of vertigo and AMD would suffer with the rest if, say, PC sales started to flag, it would still likely fare better than the competition because it's gaining market share in high-end processors at a dazzling pace.



Edit: AMD closed Friday at $25.20...high for the day was $25.75

w00t :beer: