Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 34.32

-1.2%

3:59 PM EST

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To: Mary Cluney who wrote (51588)	3/30/1998 9:52:00 AM
From: gnuman	Read Replies (1) of 186894

Mary, You're fudging! Look's like you've changed your forecast from $31 Billion CPU revenues to $30 Billion total revenues. ;-) That's an increase of less than $5 Billion in CPU revenues over '97. OK, I can live with that, but it won't be easy. The biggest problem I see with your 12 months time frame is that the new products you're counting on won't be available until mid to late '99. The other issue I see impacting Intel going forward is their plans for major entry into the low margin commodity markets, ie; Strong Arm chip and Celeron applications. While these markets will help generate revenue growth and increased factory utilization, they're going to be a real drag on margins. No doubt Intel will grow to $30 Billion in the next couple of years, and to $50 Billion over the next five or so. But to me their efforts in the commodity consumer arena indicates a changing business plan. And as they grow in these markets their margins will be impacted. The long term investor is pretty safe, but I don't see $125 share price a year from now.

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