Intel Corporation (INTC) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Intel Corporation (INTC)

INTC 50.59

+4.9%

Feb 6 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Sam Citron who wrote (6420)	2/3/1997 11:18:00 AM
From: mauser96	of 186894

"Field of Dreams" strategy-- concerning your post #6421, Andy Grove is quoted in the latest issue of Fortune Magazine as saying "Our fabs are fields of dreams. We build them and hope people will come." This is exactly the strategy I suggested in my December post. Craig Barrett (Intel's secret weapon?) said that they build factories before they need them, before they have products to build in them and before they know whether the demand will be there. Basically, they stockpile fab capacity. Their huge profits this year are due to having the capacity to meet demand. Since they plan to spend an astonishing $4.5 billion in fab expansion they must expect huge future demand. I think possible slack demand is the only real threat to Intel in the next few years - this would probably happen only in case of a world wide recession. I am a bit worried about all the good publicity Intel is getting. Is there anybody left who hasn't heard the good news? Perhaps we are seeing a shift in perception to the point that INTC P/E ratio is reaching toward the level it deserves. My take on the pricing changes announced by Intel is that they are selling all the top end chips they can make and aren't worried about competition yet. Since these are the chips with the highest margins, I think the next quarter eanings will be above expectations and probably are not priced into the stock yet.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next