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Tuesday, April 8, 2008

AMD preannounces lower results

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Intel runs you over every time you think you might get traction. It has to be hard. Both companies are struggling with a weak desktop market. AMD, though they've made significant progress on the technological front with their more sophisticated line of processors, is hopelessly under-capitalized relative to Intel. When times are great, there's business to go around for everyone. As the economy slows and business gets more competitive, it's going to be a lot worse for the lesser company. AMD is the lesser company here.

I think Intel will lower guidance for next quarter when they report and AMD's outlook will deteriorate further. Don't go bottom fishing in AMD.

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