Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 35.10

+2.3%

Nov 19 3:59 PM EST

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To: Barry Grossman who wrote (80603)	5/8/1999 10:44:00 AM
From: KM	Read Replies (2) of 186894

Commentary on Intel by a quite successful hedge fund manager interviewed in this week's Barrons: Q: What's the story on Intel? A: The first part of the Intel story is that, contrary to popular perceptions, I don't think the PC platform is dead. I expect the PC market to continue to grow at 15% or so for the foreseeable future. And within that context, Intel over the next couple of years is going to be able to take back a substantial amount of market share from Advanced Micro Devices and National Semiconductor and essentially go from having about 75% of market share to maybe as much as 90%, and do it all while lowering their cost structure. So I expect very solid revenue and earnings growth out of Intel over the next couple of years. In particular, I think Intel's unit growth rates are actually likely to be 20% or maybe even greater than 20% per year. On top of that, the company has just started to ramp up production using its latest process technology, the 0.18 micron process technology, where they are at least six months or maybe a year ahead of their competition. And this technology will allow them to dramatically lower the cost of manufacturing these processors, which in turn will both help Intel's gross margins and allow them to increase the performance of these processors -- and finally also allow them to compete more price -- aggressively against AMD and National. So the bottom line on Intel is that we expect their earnings numbers to be somewhat higher than consensus expectations. I think it can earn as much as $2.45-$2.50 this year. And for next year, we are looking for earnings in the $2.90-$3 range. We think the stock can support a price closer to 75 or 80.

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