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

To: SisterMaryElephant who wrote (113270)	10/12/2000 2:23:31 PM
From: Paul Engel	Read Replies (2) \| Respond to of 186894

Steve - Re: "Also note that Intel is simply not taking its foot off the production peddle, even with signs of slacking demand. It makes sense to me. It is extremely difficult to nail the supply/demand issue on the nose. Given this then, Intel needs to choose between the lessor of two evils; having too little product or having too much. It is clear to me, and I think Intel, that it is far worse to have too little product, as was the case the past year. The results of not enough product is that your competitors will take market share and mind share. " Superb analysis - THANKS ! Yes - Intel is also (Barrett re-iterated this) pushing forward with their 6 billion dollar capital expansion for this year. New fabs in Colorado, New Mexico, Ireland, Massachusetts, and Arizona are under construction - while Intel is also "farming out" the older i810 chip set. Clearly, Intel sees future needs for larger die - hence more wafers - for both Flash, CPUs - both x86, IA64 AND XScale, as well as supporting chip sets and peripherals. By this time next year, if Pentium 4 and ITanium are doing well, and the 0.13 micron copper process is kicking in, AMD will be on the run trying to dodge the onslaught of Intel's technology and manufacturing might. Paul

To: SisterMaryElephant who wrote (113270)	10/12/2000 4:29:04 PM
From: Harry Landsiedel	Read Replies (3) \| Respond to of 186894

Steve Kovlakas. Re: "The results of not enough product is that your competitors will take market share and mind share. You will scramble to keep up, resulting in quick product launches, recalls, pissed off customers and delays. " Very good points. Another factor is that shortages lead to panic orders, which are often double orders and when capacity kicks in, some of these orders disappear. I believe this could be part of the reason for Intel's switch from bullish in the 2Q conference call to a revenue miss a couple of months later, when the "turns" business failed to materialize in late September and many double orders got canceled. The weak Euro just exacerbated the problem. Hopefully, this is a seasonal problem and will be "corrected" in either the 4Q or 1Q, rather than a real slow down in PC demand. The fact that Intel is maintaining their heavy capital spending program and IBM just announced their own indicates where two key companies are betting. Let's keep our fingers crossed. HL