Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 50.57

+4.8%

Feb 6 3:59 PM EST

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To: Paul Engel who wrote (4633)	10/28/1996 8:49:00 PM
From: Aaron Cooperband	of 186894

Paul - Since Intel is capacity constrained producing their high end chips, I find it hard to believe that they would be able to produce enough low end (386,486, and slow Pentium) chips to support any significant NC sales effort. In addition, we've seen Intel's stock price get hammered in the past for selling low margin products (boards) even though they were making money. INTC might be able to make money by producing slower chips for the NC, but since this production would cannibalize their faster chip production capacity and probably hurt their stock price (even assuming incramental profits) I can't see any advantage to them producing the cheaper chips, unless is is simply to maintain their control of the market. By the way, an earlier note on this thread described Cyrix's top end chips as being faster than Intel's fastest chips. I can't remember any case in the past where a direct competitor of Intel's has produced a chip which is superior both in price and performance to Intel's top-of-the-line chips. AMD etc. have always been nibbling at Intel's heels. Is this really as different a threat as it looks? Aaron

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