Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: John Stichnoth who wrote (36265)	12/8/2000 2:29:56 PM
From: tinkershaw	Respond to of 54805

(over the long term--the present compression of margins is minor compared with what would happen if Intel lost its gorilla power, and CPU's were commoditized). With interests in multimedia, including "My Pictures" "My Movies" "3D Gaming" "Streaming Presentations" etc., I don't think you'll have to worry about the CPU being commodotized for sometime given the above demands. I know I don't want to buy a CPU incapable of performing on this future software. Tinker P.S. It is a large part of what INTC is doing messing with RDRAM technology.

To: John Stichnoth who wrote (36265)	12/9/2000 2:47:44 AM
From: saukriver	Read Replies (1) \| Respond to of 54805

Re Intel as Gorilla. I read your response a couple of times. Initially, I agreed, but something nagged at me, and causes me to nitpick a bit-- Intel's power as gorilla of the desktop CPU is not threatened. The value of its domain, as measured by future growth in the sector, is the thing being threatened. The reason this distinction is relevant is that it extends the period for Intel to succeed in other domains and gain fast growth elsewhere, while maintaining superior margins in CPU's (over the long term--the present compression of margins is minor compared with what would happen if Intel lost its gorilla power, and CPU's were commoditized). I would agree with you if I started from the premise that Intel is a gorilla. But I start from the premise that it is a king. AMD's inept management for many years masked Intel's true status as a company that simply executed so well in the PC chip market (without having real control of the architecture). I believe CPUs are commoditized. I also believe that the chips in many, many device are coming from many other exciting chip companies (TXN, BRCM) that can compete more effectively than Intel which is used to a high relative selling price for a PC chip. Intel is a duck out of water when it comes to selling inexpensive $20 chips so others are profiting and dominating those markets.