last quarter AMD spend ~$400MM on R&D, had a revenue of ~$1800MM and net income of ~$120MM. Intel had a revenue of ~$19000MM, or about 10 times that of AMD, so

last quarter AMD spend ~$400MM on R&D, had a revenue of ~$1800MM and net income of ~$120MM. Intel had a revenue of ~$19000MM, or about 10 times that of AMD, so it's completely realistic for AMD to double their revenue in a 'short' time frame. So if we assume no other fixed costs, then to get $1800MM of revenue costs (1800 - 400 - 120) $1280MM. So doubling revenue would cost $2560MM. Then net profit could be (3600 - 2560 - 400) $640MM, or about a 5x of current net profit, which would put the PE at 18. A PE of 18 would be very nice. And this is assuming there are no fixed costs besides R&D (like marketing of office buildings) and AMD only taking 10% of Intel's revenue.