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

To: Tenchusatsu who wrote (121212)	12/7/2000 6:17:16 PM
From: tejek	Read Replies (1) \| Respond to of 186894

As you might know already, processing power has just gone way ahead of society's capacity to make use of it. I guess some people draw the wrong conclusions from that and think that PCs must be in decline. Guess that's just one problem with 2nd-order economics. It's not growth anymore, it's acceleration of growth. Tenchusatsu, The concern is not that PCs are in decline but whether growth is slowing. If growth is slowing, then any stock related to the production of PCs can not carry the higher valuations of the past when growth was accelerating. Of course there is an intermediate step where growth maintains a certain level. That's what Dell had hoped to do....maintain its YOY revenue growth at a level between 40%-50%, and as a result Dell was awarded a valuation that fit in with that kind of growth scenario. However, they could not maintain that kind of growth and so the valuation was cut. Nothing personal, you understand; business is business....at least that's the way the street sees it. ted