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Technology Stocks : Intel Corporation (INTC)
INTC 40.56+10.2%Nov 28 9:30 AM EST

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To: Mary Cluney who wrote (124406)1/8/2001 1:13:36 PM
From: Gary Ng  Read Replies (1) of 186894
 
Mary, Re: I could understand it if Intel's policy was to grow only through organic means. But, that is not the case. They do make acquisitions. The acquisitions they do make are however always on the timid side. They are never home runs and they are rarely debacles (that we know of).

My observation about Intel's acquisition is that they would never go after those already very successful firm paying high premium but rather more interested in firms that is struggling or need their help badly. This may sound like bean counters but it may not be as stupid as it looks initially. Take DEC as an example, many people laughed at Intel of not taking up Alpha, the so called best CPU architecture, and instead go after StrongArm. Today, Intel's CPU almost surpass Alpha in terms of performance but XScale(StrongArm) seems to have a very bright future. Intel's approach in graphic chip is another, people laughed at its i740 project and the acquisition of C&T which on first look seems to be a failure. But look at the highly successful i810/815(the main reason why a better performance Duron can't compete with Celeron) which use the work of these failure product/acquisition, one may have a second thought.

gary
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