"Stick With AMD In Rising Inventory Sea"

[9-inch]

am bullish in the long term on Advanced Micro Devices (AMD:NYSE - commentary - research - Cramer's Take), but a recent spate of negative developments warrant attention. Rising processor inventories, slowing PC demand and buzz that Intel's new chips are equal to or better than AMD's have weighed on the longtime also-ran's shares, which are down some 22% since I last wrote about AMD in April, vs. a 9% decline for the Nasdaq.

There are several factors behind the apparent rise in inventories, the most important being Microsoft's (MSFT:Nasdaq - commentary - research - Cramer's Take) botched launch of its Vista operating system -- the consumer version has been put off till 2007. This has taken some steam out of near-term PC demand and backed up channel inventories for almost all computer-related components and peripherals. This can be seen on the balance sheets of manufacturers like Jabil, where days of inventory increased 16% in the quarter ended in May from the year before.

With most analysts spouting off about the rise in inventory levels, I'm inclined to believe this is priced into AMD shares. If Intel or AMD were to come out tomorrow and say inventories were growing, I doubt anyone would be surprised, and a bottom would be put into the stocks overnight.

www.thestreet.com

 

[Action_Man]

and buzz that Intel's new chips are equal to or better than AMD's

Hehe.

news on tech blogs and from a few sell-side research firms that Intel's new server processor, Woodcrest, outperforms AMD's market-leading Opteron processor.

Hehe.

but a head-to-head test conducted by analysts at Thomas Weisel found that Woodcrest uses less power than similarly configured Opteron-based servers.

Hehe.

 

[ches111]

9-inch,

Are you actualy trying to produce GOOD information from a reliable source?

What does the Motley Fools say about this?

Kudos to 9-inch for trying!!

 

[Action_Man]

Hes been quite desperate lately. He's been posting anything AMD, sometimes without even reading the data.

 

[ches111]

From the Fools:

Information removed as it was not current... (my mistake)

I quoted this since not everyone wants to sign up for a subscription to the fools.

 

[Action_Man]

The headline grabbed him I am sure

It would appear thats the case. :lol:

 

[RichPLS]

Hes been quite desperate lately. He's been posting anything AMD, sometimes without even reading the data.

He can't deduct the data, thus the need to post links... so others will interpret for him... then simply take the opposing side...

 

[TheMaster]

I don't think he actually read the story, just the headline... :roll:

 

[ches111]

Actually the fools are down on both!

For similar reasons. They are not liking the rising inventories or the soon to come price war! They blame the slow release of Vista.

They say Intel will be ok with the p4/D firesale but AMD will also be hurt by this as they will be forced to adopt similar pricing.

Might be good to wait a month and buy some Intel! I will not put money into AMD right now with their current capital spending plan.

 

[TheMaster]

I would wait after the next quarter's financials before buying... those numbers could really sink ships.

 

[gr8mikey]

I would wait after the next quarter's financials before buying... those numbers could really sink ships.

I agree! 2nd Quarter numbers usually always suck -- even in a good year.

 

[clairvoyant129]

Nice way of making yourself look like an idiot 9-inch. Good job moron.

 

[carlhungis]

Wow 9-inch, you really should read the articles sometimes.

 

[1Tanker]

Wow 9-inch, you really should read the articles sometimes.

I think with the ever-increasing amount of ownage that 9-Inch is receiving, especially the closer Conroe gets, he's gonna create a new account out out sheer embarrassment, and come back under a new name, just like the unspoken one has done many times. The Inquirer links will surely give him away very quickly though.

 

[Ycon]

Hes always been doing that.
Almost every "news" he posted actually were pro Intel with a few lines of AMD content, which is well enough for 9nm to post it.

 

[9-inch]

If you spent a little of time reading the whole article, the author does talk some great stuff about woodcrest but in general, intel isn't doing any good like how many tend to believe.

This is from the second page:

That Intel has finally addressed its processor power problems is clearly a near-term risk to AMD. However, AMD will introduce a new quad-core processor in 2007 that could consume the same amount of power as AMD's current dual-core processors, which would clearly outperform anything Intel could offer between now and then.

..and this is from THG's:

Chicago (IL) - Yesterday, Intel released its fastest server and workstation processors ever at a power level we haven't seen in several years. But the "Core" architecture, which the new Xeon 5100s are based on, may not be the universal solution for the long term, as power consumption may top 100 watts once again when quad-cores arrive in early 2007, TG Daily has learned.

To put these bits of information into perspective, we have to mention that we consider the data as very reliable, but the data refers to a processor which will not be released for another six to nine months.

Just as we were getting more and more excited about Intel's Core architecture - which without doubt is a huge improvement over Netburst - we are getting word that the upcoming quad-cores, "Clovertown" for DP servers and "Kentsfield" for desktop computers, will consume significantly more power at lower clock speeds. According to sources, Clovertown, which merges two dual-core Woodcrest cores, will not only grow in die size (292 mm2, up from Woodcrest's 142 mm2), but also be rated at a maximum power consumption of 110 watts (up from 80 watts of the 3.0 GHz Woodcrest chip.)

http://www.tgdaily.com/2006/06/27/intel_clovertown_to_be_rated_at_110w/

...Given AMD's momentum in the server space -- Dell (DELL:Nasdaq - commentary - research - Cramer's Take) came on board last month as a customer -- I would expect AMD to benefit from mind-share momentum with customers who are fed up with Intel. I don't expect it to lose much server share in the near term, regardless of product performance. I wouldn't be surprised if superior products from Intel end up being met with customer skepticism, as was the reaction to superior product claims from AMD prior to the company's recent surge ahead.

Evidence of this mind-share shift with customers can be seen with server manufacturer Rackable Systems (RACK:Nasdaq - commentary - research - Cramer's Take). Some 90% of the servers it sells contain AMD processors, despite the fact that customers have a choice between Intel and AMD chipsets. High-end PC maker Voodoo PC says its tech-savvy video-gaming customers demand AMD processors -- 100% of its desktops have AMD inside.

http://www.thestreet.com/_googlen/markets/activetraderupdate/10293798_2.html

8)

 

[Action_Man]

Poor 9nm it must be killing you that intel is crushing AMD in servers, desktops and notebooks.

 

[ches111]

Action,

Are you fishing

 

[Action_Man]

Nah, just handing out a reality check.

 

[Ycon]

I think hes just mad because AMD hasnt congratulated him for spreading all that FUD yet.
He just wants a little attention (by AMD), something that hes never got in real life.

:lol: :lol:

 

[buckiller]

9-inch you really are retarded i think....

I love thestreet.com but that whole article didnt say much about how AMD pwns Intel....just that this analyst thinks it would be best to HOLD AMD stocks...not buy...not sell...