Injured, Joe Osha started bashing INTEL

Accoding to this:

"In posting the weakest Q4 revenue result and Q1 outlook since the bursting of the bubble, Intel has made it clear how much competitive ground the company has lost to AMD. The extent of the losses has exceeded our expectations," Merrill Lynch analyst Joe Osha wrote in a research note on Wednesday.

Joe Osha made himself a fool by downgrading AMD to sell on the eve of INTEL Q4 earnings report. Joe Osha has a buy rating on INTC. I bet many investors lost money thanks to Joe.

As the Q4 2005 data shows, AMD is winning the hearts and wallets of American consumers, who always get the newest and best computer technology. The people in the third world provinces are still sticking to the INTEL brand, but the trend will propagate soon, in less than a year, we will see a global shift to AMD64.

As we can see from INTEL's Q4 2005 report, INTEL sales in the Americas dropped 10% y/y to only $1.8 billion. We can estimate that 85% of INTEL's sales were overseas. INTEL's 4Q05 sales in Asia-Pacific(excluding Japan) increased 16% over Q4 2004 to $5.1 billion, but was flat compared to Q3 2005, indicating a halt of its growth in the region, probably due to AMD's advances in China and India. Right now, AMD simply does not have the resources to have a presence in more provincial regions of the 3rd world. But those markets, though small individually, add up to a large percentage of nearly 40% (I estimate China was 10%, 50%-10% = 40%), those regions are INTEL's last safe haven and hideout.

Looking foward, AMD will grow share in Japan due to the implementation of the JFTC recommendations that banned INTEL deals excluding AMD. AMD will continue to grow substantially in China, the world's second largest PC market, as all top 3 Chinese PC makers have signed up with AMD due to customer demand for AMD64. The Internet is speading the message that INTEL is outdated. And the crumbling of INTEL stock is free advertisement for AMD -- I bet many CIOs across the world own INTEL stocks, and are busy dumping INTC to reduce losses.