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

To: wanna_bmw who wrote (166221)	6/11/2002 7:54:11 PM
From: kapkan4u	Respond to of 186894

<My past observation is that Intel has done well based on market conditions, irrespective of their competitors. Their best earnings came during Y2K, while AMD was also having their best earnings, as well as their best products and execution. Whether this pattern continues, I wouldn't be able to predict, but so far AMD has not made Intel a lousy investment. If anything, it's the other way around.> Y2K bubble helped. I will also grant you that AMD's Athlon invigorated and "ingloryated" weekly status reports throughout Intel's hierarchy. However, in the long run the "benifits" don't come close to making up for the price competition. Especially for a business model that evolved in the absence of such. Kap

To: wanna_bmw who wrote (166221)	6/12/2002 5:21:13 PM
From: THE WATSONYOUTH	Read Replies (3) \| Respond to of 186894

My past observation is that Intel has done well based on market conditions, irrespective of their competitors. Their best earnings came during Y2K, while AMD was also having their best earnings, as well as their best products and execution. Whether this pattern continues, I wouldn't be able to predict, but so far AMD has not made Intel a lousy investment. If anything, it's the other way around. My take is that as long as AMD has competitive products in most of Intel's markets (desktop/laptop/workstations/small servers/flash/etc., Intel can not prevent AMD from making money if Intel wants to also make money. And I don't mean several hundred million per quarter. Intel needs far more more than that to justify its current stock price. If demand rebounds and Intel wants to realize MUCH higher levels of profits, they will have to be less aggressive on price cutting and allow AMD to make money. Intel simply has far too much overhead to be able to extract the kinds of profits it used to with the current pricing level of processors. I think Intel will simply have to get MUCH leaner, competing on a cost basis and accepting lower profits and a much reduced stock price if they want to keep AMD at or near the break even point. I don't think they have much choice because allowing AMD to become wildly profitable would be far worse. THE WATSONYOUTH