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To: sea_biscuit who wrote (19367)	7/19/1999 11:05:00 PM
From: Tony Viola	Respond to of 25814

Dipy, I think Shane is saying that what used to be "10/20/25 billion... right here!" is now changing to, as you put it, "a hundred million here, a hundred million there...". And that is a sea change. It is this transition that could potentially render Intel into a pedestrian investment (i.e. trail the S&P 500) going forward. Just my opinion (and my interpretation of Shane's arguments). 2 things: 1. Intel has a huge warchest of money it's putting to use in expanding beyond its typical microprocessor and related businesses. Two reasons for that are to help grow revenues and expand the pipe into the PC, as Shane says. The latter justifies faster and faster (and more expensive micros). 2. 64 bit Merced is coming next year. This, on top of 32 bit Xeons being highly accepted now as the new standard in server chips, will by itself get Intel back into high gear re growth. Just today, IBM announced chipsets development by themselves for up to 32 Merced systems. Last week, they bought Sequent, which scales much higher than 32...Xeon now, Merced next year. Every other server company worth mentioning has announced support for Merced. Sun not in hardware, but they will bring up Solaris on it. Intel will be fine, IMO. They are just being their normal paranoid self, making sure they don't slow down to S&P 500 growth rate. Disclaimer: INTC is my largest holding (but I believe all this BS anyway). Tony