Formerly About Applied Materials Message Board

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Politics : Formerly About Applied Materials

AMAT 304.84

-0.8%

Jan 13 3:59 PM EST

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To: Gottfried who wrote (8764)	10/17/1997 2:26:00 PM
From: Stuart Schechter	of 70976

Can someone explain why AMAT investors get nervous when INTC has problems? This doesn't make sense to me for the following reasons. 1) INTC is suffering because their selling too many of the cheap chips for sub-$1000. These chips don't make them much profit. However, box manufacturers still end burning memory chips, bus chips, etc. - while at the same time seeding a whole new market of users who will want more powerful machines and more memory as their web browsers keep sucking more resources. 2) INTC isn't meeting expectations because of price-cutting to compete with AMD and Cyrix. The presence of microprocessor competition should only help AMAT, because it now has three customers fighting to get to the fastest processor technologies first. In years past, the AMATs of the world have relied on new operating systems to boost the need for chips. Thanks to Netscape, Microsoft, and Sun we now have new resource-sucking internet applications arriving much more often. It seems to me a prudent AMAT investor should pay more attention to the software driving the hardware than to whether Intel is able to meet expectations after spending its money on AMAT's equipment.

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