Here are a few excerpts from Joseph Osha's long-term buy reiteration after yesterday's analyst meeting. Hope this hasn't been covered today.
We came away more convinced than ever that Intel can become the dominant supplier of microprocessors used in servers and workstations. It's all too often overlooked that the explosion in internet usage and electronic commerce is driving a parallel explosion in demand for servers and workstations, the workhorses of the internet. We've said before, and will say again today, that there is a $5.5 billion to $6 billion market opportunity for Intel during the next 3 years as an MPU supplier to server and workstation makers. Our outlook for Intel's high-end microprocessor business is the single biggest reason for our intermediate-term accumulate and long term buy ratings, which we're reiterating today….
Intel is, as always, continuously refining its awesome manufacturing base, and is preparing to focus on the upcoming transition to 0.18. We think that investors may have been taking Intel's manufacturing strength for granted until recently, but execution problems from National Semiconductor and AMD have highlighted just how difficult it is to maintain a continuous stream of new product introductions on advanced processes….
…Intel detractors often point out that the company is facing rapidly declining ASPs across all of its mobile and desktop MPU businesses. We agree that the desktop PC market has become a tougher market in which to prosper, but we believe that Intel has managed to create a strategy that will move it to the next stage of growth. A few months ago we compared Intel to Sony and IBM, companies that have managed to expand beyond their initial core markets (consumer electronics and mainframes respectively) and achieve continued success and growth . Following yesterday's presentation, we are more convinced than ever that the comparison is an apt one.
And from his April 15th AMD report:
The question of whether AMD can ramp K63 and K7 production continues to loom over the company. The products are impressive on paper, but AMD needs to get them out into the real world, in volume, in order to realize any benefit. Until we see evidence that AMD can execute, our intermediate and long term investment ratings stand at Neutral.
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