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 35.53

-1.1%

Nov 14 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Process Boy who wrote (89088)	9/29/1999 9:34:00 AM
From: Robert Douglas	Read Replies (1) of 186894

PB and all, Bear Stearns' comments on Intel this morning: Key Points A story leaked late last night indicated that Intel has discovered a flaw in certain configurations of its 8-way server technology using 550 MHz Xeon processors. We believe investors are likely to react negatively to this in light of the highly publicized delay in the 820 chip set for PCs announced earlier this week. We believe the financial impact of the latest technical bug is very slight, possibly negligible. Only a very small number of possible configurations are affected, and Intel customers will continue shipping 8-way server configurations. 8-way servers represent a very small percentage of Intel-based server shipments - we estimate that well over 90% of Intel-based server shipments are 2-way and 4-way configurations. We think Intel will be able to develop a work-around within a relatively short period of time (a few weeks). We note that bugs are exceedingly common in complex systems such as multiprocessor servers. We believe investors will view the news of the 8-way Xeon server bug as incrementally negative, and we would not be surprised to see the stock weaken because of it. The bug will likely result in a slightly smaller number of 550 MHz 8-way Xeon servers shipped during the fourth quarter. This can be added to the list of factors that might contribute to, modest sequential fourth quarter unit and revenue growth, including weaker corporate PC demand, the Taiwan earthquake, and the delay in the 820 'Camino' chipset. We would use any weakness in the stock as a buying opportunity. We believe the stock price already reflects diminished expectations for the fourth quarter. Our investment thesis on Intel is predicated on the earnings growth prospects for the company in 2000 and 2001 as it benefits from a strong PC market improved product mix, lessened competition and declining costs. We maintain our EPS estimates of $2.30 and $2.75 for 1999 and 2000, respectively. We maintain our 12-month target price of $ 100.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next