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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: johnd who wrote (50736)	10/6/2000 12:19:19 PM
From: johnd	Read Replies (1) \| Respond to of 74651

AMD chips away at Intel posted 4:20pm EST Thu Oct 05 2000 NEWS Over the past year or so, it's been no secret that AMD has been challenging Intel's x86 dominance with its powerful Athlon processor. As AMD ramps up production and is able to sell more and more of its chips at competitive prices, some interesting things have happened to the marketplace. Last week, Intel lost 20% of its stock value after letting investors know that its profit growth was not accelerating at its expected pace. Intel blamed the results on a slowdown in European sales. The effects were felt across the industry, as AMD also lost substantial stock value. Today, Dell warned the market that it wouldn't meet its revenue goals in its upcoming earnings announcement. The reason? Dell is also claiming that its business in Europe is suffering. Once again, the effects of a warning from a major company like Dell caused stock values to plummet. It's interesting to note that Dell competitor Gateway does not seem to be having any European troubles. Dell is an all-Intel shop. It does not sell computers with AMD processors. Gateway sells computers with both Intel and AMD processors. Intel chip shortages hit Europe especially hard in the past quarter, and logic would dictate that Gateway and other companies that are able to provide steady supplies of machines with compatible AMD processors would pick up the slack. Earnings results are expected from AMD and Gateway in the next couple weeks. These earnings will help determine whether the whole industry is suffering, or just a select few.