JP Morgan says its more cautious on Advanced Micro Devices (AMD ).
Analyst Eric Chen says he's turning more cautious towards shares because he's anticipating aggressive price cuts from Intel. He cut the $0.01 second quarter loss estimate to a $0.03 loss. He believes Intel will aggressively push its P4 pentium chip prices into the Celeron price range, posing a significant threat to Advanced Micro's market share position.
Chen thinks a gradual market share shift is already taking place in the channel, which is partially reflected in the recent drop of the company's prices in the spot market. While Advanced Micro has secured several design-wins in the mobile space, volume remains low. Chen says he is keeping a watchful eye on the company, and keep his long-term buy rating.