Intel price cuts started yonks ago

Wow! To be the guy who is being blamed for AMD’s falling share price. Bet that sucks! Now if you were to look closely at what was actually said, perhaps people are just overreacting a little?

A financial analyst is being held responsible for a $2.63 drop in AMD’s share price because he thinks a CPU price war is looming.

In fact, it’s already loomed, but that didn’t stop Eric Ross, an analyst from Think Equity, from saying fierce price cutting from Intel will bite into AMD’s profits.

The AMD tick closed yesterday at $34, while the Intel tick closed down 12 cents at $19.73.

The next official slated price cuts from Intel on the 9xx and 8xx range of chips are on the 23rd of April and are significant. But as we reported several weeks ago, that is to blaze the trail for Conroe microprocessors and clear inventory out of the pesky channel. To help this process, Intel gave significant rebates on microprocessors to its channel partners in February. Meanwhile, several AMD microprocessors, particularly at the high server end remain on allocation.

One would have thought that such price movements would have been, in Wall Street Lingo, be built as “sentiment” into the current share prices. Source: The Inquirer

[tags]intel,amd,microprocessors,wall street,conroe[/tags]