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

To: Road Walker who wrote (137301)	6/13/2001 12:32:58 PM
From: tcmay	Read Replies (1) \| Respond to of 186894

"If anyone were to agree with your opinion that there will not be an upgrade cycle in the future, they would be wise to sell their Intel position. If there is no added value to increased processor speed, if less than 1 GHz is all that folks will need in the future, the cpu product will very quickly degenerate into a pure commodity with gross margins closer to 10%-20% than the current 45%-60% range. There will be very few IAG profit dollars to offset the multi-$Billions Intel is losing in "other businesses". Intel stock, my guess, would be worth somewhere south of $5." The future is a long time. I never said there will be not be an upgrade cycle in the future, I said I think an awful lot of individuals, small businesses, and large corporations are content to not upgrade _now_. Especially if they're stuck with 56K dial-up lines, as many homes are, and/or a lack of applications that really need more horsepower. "I believe you said in a previous post that most of your portfolio is in Intel stock. Why?" The inertia of taxes and procrastination. And because I think there _will_ be upgrade cycles in the future. Faster connect speeds, the use of computers as televisions (_not_ set top boxes), better monitors (), Windows XP, etc. ( Monitors are a market which corporate America _does_ seem to be upgrading with a vengeance. From what I see on CNBC, it looks like financial trading floors are switching over completely from CRTs to LCDs. I know the one thing I really lust after right now is Apple's stunning 22-inch Cinema Display. Started out at $4000, but is now down to $2500. And Apple and others have very nice 17- and 18-inch models for under a grand.) As for why I hold on to Intel stock, I see the manufacturing capacity they are putting into place, I see the design expertise, the whole "Intel Machine" (which I don't think enough people appreciate). There will be lots and lots of computers sold in the future, and I expect Intel to make a healthy profit on them. I see little chance of Intel falling to $5. Of course, if I could see the future I would have sold Intel at $75. --Tim May