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.

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

To: Mary Cluney who wrote (138554)	7/2/2001 10:44:50 PM
From: Dan3	Read Replies (1) \| Respond to of 186894

Re: The server market is $60B currently and growing at 14%/yr. First of all, recent server growth numbers were skewed higher by a combination of Y2K and the dot com bubble - now we're sliding down from that peak. Second, the reason DEC, IBM, SUN, etc. aren't dominating the information industry anymore is that each year the proportion of "servers" that are just PC's in different boxes gets larger. Third, when IBM gets $30 Billion in revenue from servers, it's something like $20 Billion in support contracts, $5 billion in software, and $5 Billion in hardware of which $2 billion is processors sold at a very high markup (to IBM) leaving about $0.7 Billion out of $30 for whoever makes the CPUs (mostly IBM for RS6000s, S390s, and AS400s). Go look at IBM's development tools page sometime. Almost none of their tools don't run on Intel processors! It's really quite amazing. www-4.ibm.com The notion that there is some huge number of buyers anxious to buy millions of SHV server CPUs at $2,000 each sounds great, but is very far away from reality. It remains a lovely fantasy.

To: Mary Cluney who wrote (138554)	7/2/2001 11:43:08 PM
From: brushwud	Read Replies (1) \| Respond to of 186894

What I am getting at is that a lot of people on this and the AMD thread seem to forget what these discussions are all about. They forget (as Michael Coreleoni would say) that it is about business. It's not suppose to be personal. There was a series of ads for a phone company a couple years ago that said the best business was personal. It's remarkably odd that an Intel partisan would cite Michael Corleone as an exponent of "business" philosophy. I hope I don't wind up with a horsehead in my bed for posting my opinion that Intel is overpriced at $30. The search for unrealized "hidden value" in Intel's investment portfolio and server opportunity on this thread reveals the extent to which INTC holders need to rationalize the present valuation despite the fact that in terms of current financial performance, there is no there there.