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Technology Stocks : AMD/INTC/RMBS et ALL

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To: Dan3 who wrote (81)	9/18/1999 8:28:00 PM
From: kash johal	of 271

Dan, Re:"depreciation" Well even if depreciation is $4Bn. With intel at 120M+ CPUs next year that $35-40 per CPU. Anyway you cut it they are in an awesome position. They have gotten rid of the slot 1 crap as well as expensive external cache and have reduced packaging costs with the OLGA. Previously their ASPs have averaged $200-220 and margins ahve averaged 50percent plus. They are slashing internal costs and CPU manufacturing costs. It should be easy for them to average around $200 a CPU next year and have truly blow out numbers again even IF AMD does reasonably well. AMD doing well next year for me would be 20M CPUs with average ASP of $150-175. If AMD screws up and dresden/cu flops Intel will be in a great position of course. PS depreciation is NOT part of raw costs. Intels costs have been in $80-90 rnage in past. So u can see how Intel may even get their biz up to a 65-70 percent gross margin. So a $100+ stock price may well be justified for next year. regards, Kash

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