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Technology Stocks : Intel Corporation (INTC)

INTC 48.80

+5.0%

3:59 PM EST

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To: Dennis who wrote (37196)	10/21/1997 9:14:00 PM
From: Jim Patterson	Read Replies (1) of 186894

Dennis, If you think that the new pricing trends are going to continue for a while, then PW and TK may be right. Flash pricing is down hard this week and I don't think INTC is really trying to make $ in flash anymore. In the 3rd Q, INTC sold a bunch of older chips to CPQ and CPQ offered them really cheep. Now CPQ is comming back to INTC and saying that they want more chips at the lower price. In one report I read today, the box builders are demanding lower priced chips for lower priced PC's. The analyst that wrote the report said that INTC may consider restarting production of old Pentimum clasics to fill the demand for ships in the $50-$80 range. or perhaps a P II jr that would fit into the old socket 7. Something like the old SX and DX versions. At anyrate, INTC is going to have to do something to fill this demand. It was not a real positive report. Jim

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