Chip supply will exceed demand by 11% in 2005 and by 33% i..

Archived from groups: alt.comp.hardware.overclocking.amd (More info?)

Article posted on Forbes web site.
http://www.forbes.com/markets/2004/11/26/ck_pk_1126weekmarkets.html?partner=yahoo&referrer=

"Intel (NASDAQ: INTC - news - people ) will provide a mid-quarter update for
the fourth quarter next Thursday. Earlier this week, Credit Suisse First
Boston downgraded the chip titan to "underperform" from "outperform" and
said the company may see increased competition from rival Advanced Micro
Devices (NYSE: AMD - news - people ) as well as an overcapacity for
processors. "While Intel will likely see near-term strength given
low-expectations, healthy seasonal build-demand, and improving inventories,
we would be sellers into the strength," CSFB said. "We believe Intel will
more likely continue to lose share to AMD (in both servers and desktops) due
to AMD's increasingly equivalent offerings and substantial
average-selling-price (ASP) discount. ASP and market-share erosion combined
with overcapacity risk could weigh heavily on Intel's profitability." The
research firm lowered its price target to $22 from $25 and said it "would
use the potential near-term strength to swap out of Intel and into Texas
Instruments (NYSE: TXN)." In terms of chip demand, CSFB said based on
Intel's and AMD's current manufacturing plans, chip supply will exceed
demand by 11% in 2005 and 33% in 2006. "We would need to see one or both
companies pull back their plans to get more positive," it said. Shares rose
14 cents, or 0.66%, to $21.43."

"The Week Ahead by Peter Kang"

Looks like cpu pricing my be coming down in the near future if Market
forecast are right assuming that the overage will be in cpu chips.
1 answer Last reply
More about chip supply exceed demand 2005
  1. Archived from groups: alt.comp.hardware.overclocking.amd (More info?)

    "Rusty" <rlsmith004@netzero.com> wrote in message
    news:OMPpd.38089$Al3.6038@newssvr30.news.prodigy.com...
    > Article posted on Forbes web site.
    > http://www.forbes.com/markets/2004/11/26/ck_pk_1126weekmarkets.html?partner=yahoo&referrer=
    >
    > "Intel (NASDAQ: INTC - news - people ) will provide a mid-quarter update
    > for the fourth quarter next Thursday. Earlier this week, Credit Suisse
    > First Boston downgraded the chip titan to "underperform" from "outperform"
    > and said the company may see increased competition from rival Advanced
    > Micro Devices (NYSE: AMD - news - people ) as well as an overcapacity for
    > processors. "While Intel will likely see near-term strength given
    > low-expectations, healthy seasonal build-demand, and improving
    > inventories, we would be sellers into the strength," CSFB said. "We
    > believe Intel will more likely continue to lose share to AMD (in both
    > servers and desktops) due to AMD's increasingly equivalent offerings and
    > substantial average-selling-price (ASP) discount. ASP and market-share
    > erosion combined with overcapacity risk could weigh heavily on Intel's
    > profitability." The research firm lowered its price target to $22 from $25
    > and said it "would use the potential near-term strength to swap out of
    > Intel and into Texas Instruments (NYSE: TXN)." In terms of chip demand,
    > CSFB said based on Intel's and AMD's current manufacturing plans, chip
    > supply will exceed demand by 11% in 2005 and 33% in 2006. "We would need
    > to see one or both companies pull back their plans to get more positive,"
    > it said. Shares rose 14 cents, or 0.66%, to $21.43."
    >
    > "The Week Ahead by Peter Kang"
    >
    > Looks like cpu pricing my be coming down in the near future if Market
    > forecast are right assuming that the overage will be in cpu chips.
    >
    Good news. Sounds like an overclockers dream :)
    ..................................................................................
    http://www.needgod.com/
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