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

To: Harry Landsiedel who wrote (105554)	7/12/2000 6:13:15 PM
From: Burt Masnick	Read Replies (1) \| Respond to of 186894

Filed at 5:41 p.m. ET By Reuters ORLANDO, Fla. (Reuters) - Microsoft Corp. (MSFT.O) Chairman Bill Gates will announce on Wednesday a preview release of its Windows operating system that will run on Intel Corp.'s (INTC.O) forthcoming Itanium microprocessor, the two companies said. The Itanium chip is important for Intel, because it is its first foray into 64-bit chips, which handle data in 64-bit increments instead of today's 32-bit chips. All of the chip giant's current chips are now 32-bit microprocessors and include its Celeron, Pentium III and Xeon brands. The Itanium chip, previously code-named Merced, has been delayed once. Originally slated for release in the first half 2000, Santa Clara, Calif.-based Intel said in 1998 that it would be delayed until the second half of that year. It is now slated for volume production in the third quarter. Intel and Hewlett-Packard Co. (HWP.N), the world's No. 2 computer maker, have been developing the heavy-duty microprocessor, which d will be used in the most powerful and advanced computer servers and workstations. It will compete against chips and computers made by rival Sun Microsystems Inc (SUNW.O), International Business Machines Corp. (IBM.N) and others, including H-P. The announcement by Microsoft on Wednesday should give Itanium a boost as it gets closer to production. For Intel's Itanium chip to take off, it needs to run on a variety of popular operating systems used in large computer networks, such as Windows, Sun's Solaris and others. However, analysts have said they don't expect the Itanium chip to be a big part of Intel's overall sales for some time.

To: Harry Landsiedel who wrote (105554)	7/13/2000 8:59:09 AM
From: Road Walker	Read Replies (1) \| Respond to of 186894

Good Morning Harry, Thaks for the good earnings site: bookmarked. In regards to your discussion on Intel valuation, a few things I think the street is recognizing: Y/Y earning growth has been improving. It appears that Intel is moving from mostly a PC semi company to a PC/Server semi company, which may impact net margins (higher revenue per sale probably with less SG&A). Intel Capital has given Intel the ability to "manage earnings", similar to what MSFT has had in the past with deferred revenue. Less risk. The new divisions are in hot high growth markets, when they turn profitable they should accelerate the earnings growth of the company. The PE on the S&P 500 is about 29, give or take a point. Are Intel's prospects for earnings growth almost twice as good as the average S&P company? I think so. Existing companies in the new businesses get higher PE's from investors. I hope we get more "color" (as the analysts like to say) on the new businesses on Tuesday. John