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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Goutam who wrote (76242)	10/20/1999 4:34:00 AM
From: Goutam	Read Replies (2) \| Respond to of 1570635

Intel Falls After Merrill Removes It From Top 10 List (Update2) quote.bloomberg.com _________ Santa Clara, California, Oct. 19 (Bloomberg) -- Intel Corp. fell 6.1 percent after Merrill Lynch & Co. replaced the world's largest computer-chip maker on its "Top 10 Tech" list of recommended companies with networking-chip maker Xilinx Inc. Intel dropped 4 1/4 to 65 1/4 in trading of 42.2 million shares, making it the second-most active U.S. stock. It's fallen 27 percent from a high of 89 1/2 on Sept. 3, erasing $84 billion in market value. Xilinx rose 7/16 to 68 5/8. Merrill analyst Joseph Osha said on a conference call that he expects Intel to cut prices on its PC processors to make up for rising prices on memory chips. Shares of Dell Computer Corp., among Intel's biggest customers, fell 6.8 percent today after it said higher memory prices will cut into third-quarter earnings and customers who want machines with more memory must pay more. Intel's "most important customer in the world is acknowledging that (profit) margins are under pressure," said analyst Tad LaFountain at Needham & Co., who rates Intel shares "hold." Xilinx is the No. 1 maker of programmable logic chips used in telecommunications and computer networking equipment. Its shares have more than doubled this year. Getting the Boot Santa Clara, California-based Intel is the latest stock to be dropped from Merrill's "Top 10" list in favor of a smaller, faster-growing company. The biggest U.S. securities firm dumped International Business Machines Corp. last month amid concern about slowing sales growth in IBM's computer business. Merrill replaced the world's largest computer maker with Mercury Interactive Corp., a business software testing company. Mercury Interactive shares have more than doubled this year. IBM's have gained 16 percent. Merrill analyst Eric Rothdeutsch wrote that Xilinx's shares are expected to double in the next two years and rated it "buy." Xilinx late today said fiscal second-quarter net income in the quarter ended Oct. 2 doubled to $56 million, or 33 cents a share, from $27.9 million, or a split-adjusted 19 cents, a year ago. Excluding an acquisition charge, profit was $59.2 million, or 35 cents a share, in the most recent period. That beat the 33-cent average analyst estimate from First Call Corp. Revenue rose 53 percent to $238.8 million from $156.5 million. The company unveiled a 2-for-1 stock split. "Xilinx has executed flawlessly on its new products ... giving the company a commanding lead over the competition," Rothdeutsch said. Xilinx, based in San Jose, California, is prospering because it sells many of its programmable logic chips to makers of computer networking equipment such as Cisco Systems Inc., the largest maker of Internet equipment, and 3Com Corp. Sales of networking gear are booming because of the popularity of the Internet. ___________________________________________________________ Goutama (Credit to 'FactFirst - YAHOO AMD Msg Board)