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Technology Stocks : Intel Corporation (INTC)
INTC 45.55+10.8%Jan 9 4:00 PM EST

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To: COMMON_SENSE who wrote (138746)7/6/2001 4:24:36 PM
From: Dan3  Read Replies (3) of 186894
 
Re: Now,how does a firm build a $2 billion fab plant from scratch when it makes about $15 million a quarter

Time for you to go look up "depreciation".

Then look at AMD's quarterly capital costs, and what percentage of those are covered by the expenses they account for in their income statement as depreciation - e.g. breakeven for AMD includes the costs of building new FABs.

Then do the same for Intel - it's a real eye opener!

Intel reported gross profits of nearly $1 Billion last quarter, but the reality is that they had to spend $1.5 Billion more than they took in. Intel is bleeding at a rate of $6+ Billion per year, while AMD is actually making money.
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