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

To: Paul Engel who wrote (139771)	7/20/2001 1:21:39 AM
From: Tony Viola	Read Replies (2) \| Respond to of 186894

Paul, >What everybody is IGNORING is the fact that those price cuts are ALSO ACCOMPANIED by TWO NEW SPEED GRADE introductions - 1.9 GHz and 2.0 GHz. I was wondering when somebody was going to point that out. I picked up one item from the Microsoft CC today. They were the first PC related company that stated (that I have heard) that there was increased PC buying in 1999 because of the Y2K fear, and because companies maybe had some extra budget money because of Y2K. That spilled over into 2000 some and then corporations didn't need any more for a while. They feel Windows XP and the "normal 3 year refresh cycle" will converge to result in a pickup in 2002. Well, another item: Microsoft claimed very good results from their upper echelon OSs, like Windows 2000 Professional and Windows 2000 Server, and were pretty bullish over the prospects for Windows 2000 Advanced Server and Windows 2000 Datacenter Server. These will help Intel sell the higher performance P4s, Tualatin servers and Xeon servers. I didn't catch any 64 bit/Whistler talk, but I only heard part of the CC. Kind of surprising Microsoft talking down the next quarter, unless they're lowballing like they've been known to. Tony

To: Paul Engel who wrote (139771)	7/20/2001 12:48:13 PM
From: COMMON_SENSE	Read Replies (2) \| Respond to of 186894

Paul I know what you are saying is exactly right. The message is that Intel is ramping up faster technology and dropping prices. They are able to move ahead of the Athlon top core speed of 1.7 GHz and take over the market with a better performing family of chipsets. I believe, having watched Intel for at least a decade, that we are in a great time warp. Intel is taking a beating now. It is dropping prices to keep market share. Many firms like Gateway need a lot of help from partners like Intel. But look out a year from now. Expectations will be a lot lower by investors. New products will be in the market already. Intel will move dramatically forward in their next generation technology. Intel will literally leave AMD behind. There is no question in my mind that Intel's cost of production, while a bit higher now with the new P4 chips, will fall dramatically next year with the better 300mm wafers and the .13mu chips. All I hear from AMD is about their Dresden Plant and the 100% production and the 100% yield, and the next product is coming out tomorrow and tomorrow never comes. It also surprises me that other investors can't see future investment. A company often invests heavily in the future and sacrifices the present profits a bit. The gas/oil companies have done this for over 70 years. A gas station on every block. Tons of bucks buying "rights" to drill in 10,000 foot waters. All very "iffy".... So investment in the future counts.... Why are chips any different?