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Technology Stocks : Intel Corporation (INTC)
INTC 50.59+4.9%Feb 6 9:30 AM EST

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To: Kal who wrote (9662)1/30/1997 7:47:00 PM
From: Nathan Brown   of 186894
 
If you remember back to the 3rd quarter of last year Intel made about $1.84 (I don't remember exactly) and $2.13 in the 4th quarter. The reason why Intel did not reduce their price on microprocessors last quarter was that they were already sold out and would have liked to raise their prices. They fell to an inventory low of $50 million at one time last quarter. You can check out the results from last quarter at intel.com.
Intel is running at maximum capacity and they are increasing their expenditures on capital investment from $3 billion to $4.5 billion in the next year. They need this capacity or they won't be able to keep increasing revenues nearly as much. Right now all of the factories are running at full steam.

Maybe $2.50 is a little optimistic but $2.40 shouldn't be too far off for next quarter.

Nathan
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