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Technology Stocks : Intel Corporation (INTC)

INTC 37.32

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3:32 PM EST

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To: puborectalis who wrote (57950)	6/15/1998 12:54:00 AM
From: Paul Engel	Read Replies (2) of 186894

Stephen - Re: "Do you guys think that earnings will not surprise on the upside til 2000?" Earnings will track two things: 1. Overall economy (S.E. Asia concerns) and PC market health 2. Conversion rate from Pentium MMX (Socket 7) to Pentium II/Slot 1/2 devices. The latter (Slot 1/2 sales) - will give a boost to sagging ASPs. Intel already stated that they are over 50% converted to Slot 1. With Slot 2 devices entering the market officially by June 29, I expect Intel to show rising ASPs by the end of this year - hence, improved earnings. As a confirmation of this trend, Brian Halla noted in NSM's conference call (6/11/98) that Taiwan Mother Board Makers are introducing new MBs that are 90% Slot 1. Conclusion - Socket 7 boards/CPU sales are going to dwindle more rapidly that AMD and Cyrix expect. Removing AMD and Cyrix from the competitive equation - they do not have Slot 1/2 CPUs - will distance Intel from further ASP erosion and eventually result in rising ASPs. Paul

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