Gene, I will only say this. If you are an investor in Intel and you believe in a static model of near zero growth in wordwide demand for CPU's. Then your right, you should get out of Intel right away.
What I believe, and I think what some others are saying, is that growth in CPU demand has only just begun. Worldwide penetration of computers is still rediculously low.
Visualize this scenerio for a moment. The PC penetration rate in homes in America rise from 40% to 55% in the next 4 years. The developed countries of the world rise from 25% to 40%. China, India, and most of the Latin American countries rise from less than 5% to 20%. Even if ASP prices fall to below $200.00. Intel's future looks tremendously bright.
Some would say, the above scenerio seems rediculously optimistic. I don't. With the advent of the Internet, Video phones, voice activation, and all the great educational software sure to come out with DVD technology. I think this is a real possibility!
Now take it just that one step further....If decent game playing computers are being sold for $400.00. Why buy a Sega or Nintendo?? If that happens, as Andrew Grove recently alluded to in a speech, Every middle income home in America will have at least two computers. One for mom and Dad, the other for the kids.
Now throw in faster bandwith and college courses go online in droves!
Then Merced arrives in full bloom!
And so I continue to buy Intel every month, and believe in a few short years it will become obvious to everyone.
Michael
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