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Analysts Continue Commenting on AMD and Intel Price War
The beginning of the year coincided with negative assessments of the effects caused by the recent exchange of blows in the so-called “price war” between the two leading manufacturers of x86-compatible microprocessors.
For example, Goldman Sachs experts advise their clients to sell AMD shares, as they expect the company’s position to weaken within a year, given the rise in fixed costs (the amount of which does not change depending on the volume of production), limited room for price maneuver and increasing competitive pressure from outside. Intel.
Their ThinkEquity colleagues confirm AMD’s skeptical outlook by analyzing the picture of stocks in distribution channels. According to ThinkEquity, AMD stocks jumped from zero to about a month’s stock over the past month. Since low inventory was due to AMD’s entire capacity working to meet original equipment manufacturers (OEM) needs, an increase in inventory levels could indicate a sales challenge. In an effort to “clear the rubble”, AMD continues to reduce prices, which painfully affects distributors.
Original Equipment Manufacturers (OEMs) have raised concerns about AMD’s plans, analysts say, especially with regard to laptop processors. These fears could translate into a loss of market share in favor of Intel. An additional factor of uncertainty is the question of how accurately the company will dispose of the opportunities opened up after the takeover of ATI.
In turn, Intel is expected to continue pricing pressures, forcing AMD to cut prices. The end of the price war is not yet in sight, and one does not need to be a great specialist to realize that in this case, as always, the advantage, in Napoleon’s words, is on the side of the “big battalions”. Simply put, someone who has a lot of money.