Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 33.62

-4.2%

3:59 PM EST

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To: Willie Lew who wrote (42348)	12/16/1997 5:47:00 AM
From: Joseph Pareti	Read Replies (1) of 186894

>it will comeback up to at >least $85 or more by the end of Feb. >in my opinion. my estimate was even more bullish or $120, though I can't specify the timeframe exchange2000.com the fundamentals have obviously changed as explained below source pathfinder.com McNamee: What's going on is, PC makers are trying to emulate Dell's business model of build-to-order. This is resulting in a substantial shrinkage in the chip industry's pipeline. In other words, the length of time between Intel's making a microprocessor chip and a customer's purchase of a PC that contains that chip is getting shorter. The industry has probably taken four weeks out of the pipeline in 1997. That pipeline will shrink further because IBM, Hewlett-Packard, and CompUSA are creating build-to-order businesses. Intel suggested at its recent analysts' meeting that this phenomenon will cost them half a billion dollars' worth of revenue this year. Meeker: Why they didn't fully appreciate that two quarters ago is beyond my comprehension. Assuming Intel can handle this pipeline shrinkage, as you call it, do you think it can successfully negotiate its way through the new world of networking? McNamee: That's the challenge Intel faces. I think it's doing a great job of positioning itself for the networking market. But you're talking about taking a business that's tens of billions in revenues and repositioning it--you don't do that by snapping your fingers. I think Intel's profitability will be lower in 1998 than it was in 1997, but Wall Street's expectations are coming down enough to compensate for that. And don't forget, this is one of the five greatest companies in our economy.

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