Wed, Jul 18th 2007 8:35am
On Wall Street, there's a constant battle between growth and margins. Ideally, a company can show good growth and healthy margins, but often one gets sacrificed for the other. Last night, Intel came out with quarterly earnings that were up by 44% over the year-ago period -- perfectly respectable, particularly considering the headwinds facing the industry. But in order to keep sales high and keep AMD at bay, the company had to fall on its sword with respect to pricing, which proved a disappointment to investors. The company says it foresees continued growth, but it's hard to imagine that it could keep up this clip at the same time everyone else in the industry is suffering. Still, the fact that it managed to grow while remaining quite profitable is a further indication of how badly the company is drubbing AMD right now.
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