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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: drachelle who wrote (4533)	8/11/2000 10:47:33 AM
From: Goutam	Read Replies (1) \| Respond to of 275872

drachelle, <Given that Intel is more and more getting to be known as an investment company with extensive holding of self-fulfilled prophecies, do you suppose this can have a material impact on future "investment earnings?" First off, welcome to this board. I don't think Intel owns any RAMBUS shares, so there won't be any negative impact on Intel's Capital due to RAMBUS. But, Intel already paid dearly in terms of time, R&D, diminished competitive advantage over AMD, etc., by focusing on RAMBUS only strategy. Goutama

To: drachelle who wrote (4533)	8/11/2000 3:23:33 PM
From: Eric K.	Respond to of 275872

Hello and welcome Drachelle-- At the present burn rate, Intel Capital will be out of capital gains to credit to earnings within three to four quarters. Most of their holdings were rather dubious in nature (in terms of being standard Internet overvalued fluff), and so the new capital that they are undoubtedly pumping in will probably not lead to anywhere near as much in gains (especially in percentage terms). Moreover, even though they have denied it vigorously and repeatedly in the conference calls, there certainly seems to be some planning around how much in capital gains to realize per quarter for the sake of beating consensus estimates. I suspect that the lack of 4M strike $2.50 RAMBo options has had a material adverse impact on investment earnings. Then again, this probably won't start stinking up Intel for at least a few more quarters. So, my main concern, downdraft in AMD and semiconductors in general due to Intel missing its numbers, shouldn't be a concern for a while yet. -Eric