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Technology Stocks : Intel Corporation (INTC)
INTC 36.15-0.6%Dec 24 12:59 PM EST

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To: AK2004 who wrote (146603)11/1/2001 11:37:01 AM
From: GVTucker  Read Replies (2) of 186894
 
albert, RE: Intel and capacity

Is Intel taking a big gamble by expanding capacity right in the midst of an economic slowdown? Sure. And it is certainly more aggressive than I would think prudent.

Note, though, that about a decade and a half ago, Intel aggressively increased capacity in a similar manner. And bean counters like me were similarly critical, thinking that they were overly aggressive with the expansion. In fact, some extremists out there were saying that Intel was gambling their very survival because the capacity expansion was so large.

It turned out to be the best single decision Intel made outside of the DRAM business exit, IMO.
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