Applied Materials No-Politics Thread (AMAT) Message Board

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Technology Stocks : Applied Materials No-Politics Thread (AMAT)

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To: Sam Citron who wrote (4968)	1/16/2003 3:24:00 PM
From: Jacob Snyder	Read Replies (2) of 25522

OT (not really) re military chip demand: The number of chips in the average bomb, just like the number of chips in the average car/toy/house/anything-I-buy, is on a permanent uptrend. Worldcom and US Steel may not be able to afford to replace all the PCs they bought before Y2K (at least not this year), but I'd bet the Pentagon can. Their IT budget hasn't been cut. Demand by governments running massive deficits (300B$ in 2003, a record by a wide margin) is one big factor propping up demand for chips. Notice, also, that every government on earth is currently running huge and unsustainable deficits: China, Japan, many European governments, etc. So the chip industry is exposed to DOD spending, whether they are trying to or not.

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