RE: "If he thinks that AMD is a strong buy, then Intel should also be a strong buy."
Steve,
I believe he mentioned (on the AMD thread) Intel's large size mathematically works against the company, i.e. growth becomes harder for a larger company. He also posed a thought and questioned if the PC market was mature or if the software was behind the hardware (he didn't specifically discuss why he questioned this, but I suspect he may perceive the market wanting no more than static-versions of WW, XLS, PPT (and possibly perceives no significant invention of other CPU intensive apps) and on-ramps to the Internet which he appears to perceive will remain for some time as static graphics, not full-motion video, and he perceives consumer broadband will not happen for some time (which sounded like he was conceptually more focused on short-term consumer Internet needs, not Intranet.)
The rating is probably too conservative on Intel's new initiatives, too conservative on the Server opportunity Intel has, maybe a bit too focused on the near-term consumer market, and appears to be overly optimistic on AMD's potential impact in the Server area (although, he did acknowledge AMD is a risky investment.)
In my opinion, Intel is a solid buy over the long-term.
Regards,
Amy J |
