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

To: Elmer who wrote (88060)	9/9/1999 11:34:00 PM
From: t2	Read Replies (1) \| Respond to of 186894

Analysts expecting Intel to preannounce positive earnings surprise for this quarter. This stock should continue climbing----it is still building up more momentum. It is probably the best stock to own in the coming months (limited downside) and lots of upside potential. quote.bloomberg.com Intel Soars as Rising PC Demand Seen Boosting Profit (Update1) Intel Soars as Rising PC Demand Seen Boosting Profit (Update1) (Adds closing stock price.) Santa Clara, California, Sept. 9 (Bloomberg) -- Shares of Intel Corp., the world's No. 1 computer-chip maker, have surged 47 percent since July amid expectations that increased demand for personal computers is boosting third-quarter profit. Intel rose 1 13/16 to 87 3/4 today in trading of 19.9 million shares, making it the most active U.S. stock. It's the third-best performer in the Standard & Poor 500 Index during the past three months. Surging demand for PCs is likely to prompt Intel to tell investors that third-quarter sales will be higher than earlier forecasts from the company. Profit for the quarter ending this month could be 60 cents a share or more, several analysts said. That compares with the average estimate of 57 cents from analysts surveyed by First Call Corp. ''PC demand picked up faster than people anticipated,'' said John Spytek, portfolio manager at BancOne Investment Advisors, which owns 13 million Intel shares. ''The general opinion is they will see double-digit sales growth rather than just slightly up.'' Intel said in July that it expected third-quarter sales to be ''up slightly'' from the second quarter's $6.75 billion and gross margin to widen from 59 percent. Now, analysts said sales could be as high as $7.8 billion. A year ago, Intel had earnings of $1.56 billion, or 44 cents a share, on sales of $6.73 billion. The company will take a charge of as much as $330 million in the third quarter for its purchase of Level One Communications Inc., which closed in August. Rising Demand Intel is benefiting as consumers buy more personal computers and from increasing supply of some of its most powerful chips. PC shipments are forecast to rise 25 percent in the third quarter, up from an earlier estimate of 19 percent. In addition, the Santa Clara, California, company has cut prices three times this quarter, helping spur demand even more. The chipmaker could disclose better-than-expected results in the next week, analysts and investors said. ''It's more a question of when, rather than if, they will preannounce,'' said analyst Charlie Glavin of CS First Boston, who rates Intel ''buy'' and raised his estimate to 57 cents from 53 cents on Aug. 13. ''Demand is very strong.'' Analyst David Wu of ABN Amro Corp. said it's ''inevitable'' that Intel will make a positive preannouncement. He raised his estimate to 61 cents from 56 cents on Aug. 31. First Call said seven analysts have raised their estimates in the past 30 days. Last year, Intel announced better-than-expected results for the third and fourth quarters before final results were released. The third-quarter announcement last year came on Sept. 10, 1998. Analysts said Intel doesn't advise them about its expectations for earnings other than what the company says in the quarterly earnings conference call. ''They don't give you any help. You are on your own,'' analyst Wu said. Intel declined to comment. Sales Rising Intel cut prices on its Pentium III chips as much as 41 percent this quarter, helping to lure more buyers from the Pentium II-based computers, analysts said. Market researcher International Data Corp. yesterday raised its estimate for third-quarter PC shipment growth on rising demand from consumers and small businesses. Intel's chips are found in more than 80 percent of new PCs. Intel spent much of the first half of the year slashing prices to regain lost market share from Advanced Micro Devices Inc. Intel's share of the low-cost PC market has been climbing since March. AMD also has been struggling with manufacturing problems and ramping up production of its new Athlon processor, designed to compete with the Pentium III. ''They'll do better than 57 cents, there's no doubt about that,'' said analyst Joe Osha of Merrill Lynch & Co., who rates the stock ''buy.'' ''I'd be surprised if they didn't beat 60 cents.'' NYSE