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Technology Stocks : Intel Corporation (INTC)
INTC 35.62-0.9%10:57 AM EST

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To: Jim McMannis who wrote (41581)12/5/1997 8:46:00 PM
From: Lee Penick  Read Replies (1) of 186894
 
Re - "If AMD and Cyrix can sell all they can make then Intels price cuts are a moot point are they not? They are capacity contrained...especially AMD..."

Not a moot point at all. If AMD makes no profit, it is much harder to compete in the future when it is time to:

- design a new chip,
- build a new fab,
- buy new equipment for 300mm, .25, Cu, etc.
- hire the best people, Stock options arent' worth much with zero profit.
- try to compete in other areas Intel is heading.

Why is AMD in business if they can't make a profit for their owners...so Jerry can ride around in a nice car?

Lee
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