SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Formerly About Applied Materials
AMAT 297.57-6.6%3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Brad Rogers who wrote (17026)3/4/1998 6:45:00 PM
From: BelowTheCrowd  Read Replies (2) of 70976
 
That capital spending number is exactly the one they've announced before, so no real news there except:

Intel is going to keep on spending on capital equipment despite any temporary downturns. That is a good stabilizing force for AMAT.

However, most players in the market are not Intel. This is going to hit everybody's stock price and make it more difficult for companies which are not cash-rich to be able to afford equipment at the moment. AMD in particular could get badly hit since they're already low on cash and have an equity offering planned to alleviate it. The market may now preclude them from doing that.

The Koreans will probably continue to have funding problems as well. They were reportedly getting close to some funding arrangements for new capital expansion, but anybody who was thinking of offering them credit is going to have second (or third) thoughts given the market right now.

The biggest long-term winner from all this will be Intel themselves. They've got the cash to spend through this and emerge stronger on the other side while their competition gets squeezed.

AMAT probably is a long-term beneficiary as well. They have a good history of spending through downturns, often snapping up good technologies from competitors who can't weather the storm as well, and always emerging strong. The question of course is how long it takes.

mg
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News