Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Dan3 who wrote (87542)	9/1/1999 12:30:00 AM
From: Brian Malloy	Respond to of 186894

A lot of analysts and companies went out on a limb for AMD back around March '97. The results have been so so but the boasts of Jerry just didn't happen, knocking out INTC, being profitable, having dominant Microprocessor share in China or bringing the Dresden facility on line on time and so forth. I think people hear the words of AMD but are waiting to see this time. Their actions are so loud that it is sometimes difficult to hear their words. If the Athlon ships in quantities and they have better QQ and the company can make money then there will definitely be an adjustment for AMD. It could rise to $40 or even $60 in fairly short order. I would also expect INTC to be around $150.

To: Dan3 who wrote (87542)	9/1/1999 10:24:00 AM
From: Robert Douglas	Read Replies (2) \| Respond to of 186894

Dan, Thanks for your contribution and the civil discussion. You wrote: No argument here, Intel is an absolute machine. But AMD has done some impressive work recently, and is valued at about one percent of what Intel is. This can be a dangerous logic to use in investing. Once in a while the challenger topples the champ. We all have visions of young American hockey players beating the favored Russians in 1980. But when it comes to investing I think another sports comparison is better. How much more is Michael Jordan "worth" to a team than the 12th man on the team that scores 3 points a game? If Jordan averages 30 points a game, should the 12th man be worth one tenth what Jordan is worth? That of course is ridiculous and no NBA general manager would accept that logic. Jordan is one of the few players that can win a championship virtually by himself. This is the currency by which value is determined. In the stock market the important thing is profits. AMD hasn't been able to accomplish this and it is no certainty that they will ever reach the volumes to do so, and almost certainly not the profitability levels on INTC, even if Athlon is PIII's equal. Remember in my NBA example that Mr. 12th man is one of the best basketball players in the world. In sports being in the top 1% gets you nothing. You need to be the top. Intel is the tops and in my opinion is worth 100 times AMD.