AMD has slashed 400 million waffers from GF for Q4 and that will save a tone on expenses for the 4th Q.
Before the basher gets his panties in a bashing spree, AMD cut the waffer order for 2013 by 1.5 billion. AMD does have to pay GF 320 million for cutting the orders, but that is better than ordering 1.5 billion waffers you do not need. The saving is far greater than the 320 million going to GF.
Expenses were also cut by shedding 15% of employees. This gave AMD the opertunity to shed those employees who were not up to expectations.
Notice that we are just a couple of weeks away from the 4th quarter report and AMD has not given a warning as in the past couple of quarters. No warning tells us that AMD will be reporting a better than expected report.
Sentiment: Strong Buy