>This is true (in many (but not all) cases...for a highly cyclical stock, which INTC is
>not.
While it's not an aluminum stock, it's not Coca Cola either.
>Computer demand is growing at a very healthy rate throughout the ENTIRE
>WORLD. And (especially with the falling prices), we're going to have to be in a
>major depression to see a significant decrease in PC sales. That, or the NC is going
>to have to ramp up sharply. Both scenarios are unlikely.
A lot of the world would find itself in a major depression were the U.S. to go into recession. And the first things to go will be big-ticket discretionary purchases like PC's. That's right, discretionary -- even businesses won't see the need to spend on them if things get too tight.
As for the ramp-up of the NC, don't underestimate it.
pcweek.com
Even Micorsoft is getting in on the act.
>The cyclicality that INTC faces is with its industry...which is now appearing to be at
>the BOTTOM of a cyclical downturn. Of course, INTC isn't even that sensitive to
>its own industry either.
INTC is starting to try to develop a brand identity. This will help it to differenciate its products from the rest. So, in that sense, they will be better off than, say AMD.
I don't see the computer industry being anywhere near the bottom of their industry, not when compared to, say, the recession of the early '90's. Are they near the top? How high is up?
>Don't get me wrong, there is a cyclicality to INTC, but I don't think it's too
>significant. Even so, we are still FAR from the peak.
>
>Sorry Jerry, but I totally disagree with you here. In the 80s, the world wasn't nearly
>as computer-dependant as it is today.
"This time, it's different." |
