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.

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

To: L. Adam Latham who wrote (77501)	10/28/1999 12:10:00 AM
From: Yougang Xiao	Respond to of 1573834

Adam, in the tradition of balanced posting:-), the following news may not be good for the short term. Do not know whether AMD is capable of taking advantages like this. ++++++++++++++ Intel Sinks on Reports of Coppermine Problems By Monica Rivituso 10/27/1999 4:03PM ET NEWLY MINTED Dow component Intel (INTC) opened lower today after Salomon Smith Barney analyst Jonathan Joseph took a swing at the chipmaker. Intel shares dropped 3% before bouncing off their lows, then veered south in the afternoon, closing down 2.8%. In a research note, Joseph says he's getting "multiple reports" that the chipmaker is still having some manufacturing problems this quarter that will make it difficult to meet the commitments it has made to customers. The problem, Joseph says, appears to be with Intel's new 733-megahertz processor, the Coppermine. The Coppermine, which was launched this week after a delay, is made with even more tiny circuitry than other chips, which has proven to be a somewhat problematic shift for the industry. What's more, Joseph says Intel's product mix is being affected, as the company is running short of some Pentium III and Celeron chips. He explains that the aggressive ramp-up of Coppermine production has disrupted production of other chips. The picture isn't any clearer on the demand side, either. "We wish we could say the demand side is monolithically positive, but we cannot," Joseph says in his note. A couple of weeks ago, he explains, leading Taiwanese motherboard manufacturers were worried about component supply due to the Sept. 20 earthquake. "Now they are concerned about U.S., Japanese and European corporate demand," Joseph says. He's hearing that large U.S. original equipment manufacturers have begun cutting back fourth-quarter orders due to Y2K wind-downs. Also, he notes, there are reports indicating Japanese PC makers Hitachi and Fujitsu have starting curtailing production, while at least one European PC manufacturer is trimming its plans. "This all puts a short-term cloud over Intel's performance in the fourth and first quarters," he says. Joseph cut his fourth-quarter earnings estimate to 59 cents a share from 64 cents and lowered his 2000 forecast to $2.65 from $2.85. But he maintains his $95 12-month share-price target.