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Technology Stocks : Intel Corporation (INTC)

INTC 50.59

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Feb 6 9:30 AM EST

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To: SisterMaryElephant who wrote (1640)	6/4/1996 11:49:00 PM
From: Paul Engel	of 186894

Steve - You raised an excellent point. Intel's key customers (Compaq, HP,etc.) and competitors (mostly MIPS, now part of Silicon Graphics and DEC) banded together to create a new platform for hardware to compete with Intel and its monopoly position. Compaq also (even earlier) helped fund NexGEN to make Intel compatible processors independent of Intel. I think part of Intel's paranoia (Andy Grove's paranoia) is a carry over from these events. Imagine taxpayers getting together and deciding to fund a new government different from our Federal government! I would predict rather dramatic demonstrations of government paranoia! (Note - I'm not advocating this, but the thought is intriguing! Just think - we could get a whole new bunch of politicians to waste our money for us.) Anyhow, the ACE consortium didn't succeed for a variety of resaons, not the least of which was the introduction of Intel's Pentium chip followed by rapid increases in speed and rapid decreases in price. Intel got a wake-up call and reacted accordingly. Paul

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