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Technology Stocks : Intel Corporation (INTC)

INTC 46.49

-3.6%

3:59 PM EST

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To: Thomas J Pittman who wrote (32805)	9/26/1997 12:45:00 AM
From: Paul Engel	of 186894

J - Re: Intel & Focus During the mid 1980's, the new "chip set" companies were eating Intel's lunch. Chips & Technologies and other such companies replaced all the Intel x86 support chips (found on 8088/80286 motherboards) with 3 or 4 ASICs and EGA graphics adapter chips, etc. Intel was left with supplying only the CPU while these other little companies were getting a lot of business at Intel's expense. Over the past 5 or 6 years, Intel's aggessiveness in producing products beyond the basic CPU has allowed them to introduce NEW CPUs much faster than relying on third party support, as well as providing new revenue streams from chip sets and motherboards. These newer products don't have the margins that Intel's CPUs have, but they significantly increase the VOLUME of Intel's CPU sales. Further, they allow Intel to "LEAD" the market in new features such as PCI and AGP buses, QUICK WEB software, etc. Intel's networking foray will do the same for Intel's SERVER CPUs. Paul

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