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Technology Stocks : Semi Equipment Analysis
SOXX 316.33+1.3%Dec 10 4:00 PM EST
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To: Gottfried who wrote (3329)5/29/2002 9:48:18 AM
From: Return to Sender  Read Replies (3) of 95563
 
This just is not how the market is seeing things at all Gottfried:

RtS, the glass is half full because Intel said >"One thing that's different here is we're seeing aggressive production yields," said Intel spokesman Robert Manetta. "Our investments over the last couple of years are really starting to pay dividends."< So now the others will feel even more pressure to upgrade their fabs.

Instead the market sees the price reduction by Intel as a lack of strong demand for their chips. In addition the market sees this lack of demand as potentially damaging any hopes that INTC will be raising their capex any time soon. Oh sure the new equipment is cutting their cost of production but when will they need additional equipment?

And finally although other companies need to upgrade their equipment to join Intel in more cost effective operations the market today does not care. It simply is saying again that the cup is half empty and that these stocks are over valued.

It is all supply and demand. Demand for chips is growing but not fast enough. Demand for chip equipment is growing but not fast enough.

Demand for these stocks in long term portfolios?

Now that seems to be falling again today.

RtS
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