Bear Stearns Raises Advanced Micro Devices Outlook
Bear Stearns raised its estimates on Advanced Micro Devices (AMD ).
Analyst Gurinder Kalra says lead times for high-density NOR flash chips (greater than 16 megabytes) from Intel and AMD have extended to 10 to 12 weeks, from 6 to 8 weeks, on the back of handset strength. NOR flash chips are used in some cellular phones.
Kalra says AMD has fully booked its high-density NOR sales for the fourth quarter, and has started to take orders for the first quarter of 2004. Strength in low-density NOR pricing (less than or equal to 16 megabytes) continues, as last month saw an average price-per-density increase of 4%.
Kalra raised the 8 cents fourth-quarter earnings per share estimate on $1.06 billion revenues to 10 cents earnings per share on $1.10 billion in revenues.