It will be Intel's peer or superior in the long run. I use and recommend AMD based servers to my customers. The fact is that for database applications and floating point math, they are superior to Intel in a real world environment. Current threats: Intel "quadcore" is a superior 1 processor machine for generic IT needs. Core 2 is superior for 32 bit, not floating point applications (generic home computing) Intel has massive marketing capabilities Gaining market share at the expense of margins Intel 45nm AMD bad 65nm launch Strengths: Still continues to gain market share in spite of Intel's best efforts on all fronts Emerging markets such as China are very open to using AMD Good business partners ATI merger should be beneficial in the long run and allow OEM's to do one stop shopping. ATI has better chipsets than Intel, especially where graphics are concerned. Some day, the GPU/CPU combo should be good too.

Short term speculation and potential long term gains. I wouldn't normally buy this kind of stock but other people want to for some reason so I will let the price go up for a while. I will dump it as soon as there is any material bad news. The only thing pushing this stock is good news. They aren't profitable yet.

Bought at 43.44 on 1/12/2006. Officially calling the short term bottom of oil and many oil stocks for ~3 month period.

Bought at $25.01 on 3/14/2007 as a reflexivity play. It was irrationally beaten down with the subprime panic but should actually benefit from the situation.

1. Democrats control congress. That is good for generic drugs (patent laws, medicare, etc) 2. Small cap - I love how small caps can move 3. Good company 4. If we have a recession, people still need medicine, especially cheap medicine.