George, not to sound condescending, but you are totally missing what Intel is all about...Price compression and more competition is the layman's arguement for Intel bears...but I can spend hours telling you what a compelling investment Intel is...but since I don't have hours but minutes, I'll just list a few major ones:
1). products segmentation and specialization: yes, commodity-like dynamics may be occurring in the very-low-end consumer space, but that represents roughly 10% of Intel's total business. Intel is moving into low/mid/high end servers, workstations, etc. that will more than make up for any price competition.
2). Intel will become the cost leader. Not only is Intel innovating to deliver end-products, but they are doing it with fewer resources, manufacturing innovations, etc.
3). Intel expanding into totally NEW market segments. Intel, a few years from now, will not just be a PC CPU maker. They will leverage their CPU expertise into new segemnts such as e-commerce, consumer electronics, etc.
4). Intel still undervalued when compared to other market leaders such as cisco, microsoft, dell....As long as Intel innovates thru R&D and delivers the technology standards, they deserve the high PE.
well, my few minutes are up.
joey |
