GVTUcker, <<<But all of the positives that you mention are pretty well known. I'd argue that most of them are already discounted in the current price of the stock.>>>
But, in the same way all the negatives of slowing PC demand, reduced Corporate spending, global economic slowdown, possibilities of domestic and global recession, uncertainties with regard to terrorist activities, and pricing pressure from competition (AMD) are also discounted in the current price of the stock.
But, what I don't see priced into the stock is the fundamentals of the company. Intel is high tech and it sells for the same multipe as companies like Dell.
Intel and AMD, combined has about 95% of the microprocessor market. The microprocessor is about the most important technology of our time - for now and for as far as you can project into the future. It is not only PC, but it is also information technology and the whold computer industry.
Dell has about ten percent of the market reselling Intel's technology. It adds very little value to the technology. In some cases Dell adds absolutely no value to products they resell. Dell has plenty of competition.
By any kind of logic, if Intel stock drops half its value, so called technology companies like Dell Computer would collapse completely.
IMO, Intel is really a proxy for the strength of the US tech driven economy. If Intel valuation collapses, the whole US economy would collapse.
Mary |
