Intel’s (INTC) margin problems, which have taken its shares down over 5% today, have not been nearly as hard on its smaller rival AMD (AMD). Its shares are off only 2.3% on a big down day for tech.
A look at the Intel numbers should scare AMD holders, but it hasn’t. If Intel’s margins go squeezed, it would stand to reason that there is still a price was going on. And AMD should suffer a similar decline in gross margins.
Perhaps it is because AMD expectations are so low.
Analysts looking for -$0.85 after warnings now on $1.26 billion revenues. The real problem is that even if the company is able to ink a turnaround is that the it is expected to post losses for fiscal 2007 and even in 2008.
But, AMD’s number could be worse than that. Intel’s certainly were.
Douglas A. McIntyre
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