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: THE WATSONYOUTH who wrote (166251)	6/12/2002 5:26:02 PM
From: L. Adam Latham	Read Replies (1) \| Respond to of 186894

TWY: I think Intel would be quite happy to raise prices, and allow AMD to raise them too, if Intel did not lose market share. However, even the slightest hint of collusion between the two dominant sellers of microprocessors would results in a swift investigation by the DOJ. The resulting negative publicity would probably more than cancel any stock price appreciation Intel (and AMD) would obtain from the higher profits. Adam

To: THE WATSONYOUTH who wrote (166251)	6/12/2002 7:02:56 PM
From: wanna_bmw	Read Replies (1) \| Respond to of 186894

TWY, Re: "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... I don't think they have much choice because allowing AMD to become wildly profitable would be far worse." I guess you have your own opinion, but I don't see how it would be bad for AMD to make money. If the market improves and Intel can raise prices, then AMD should be able to do well, also. I've never believed the myth that AMD can do so much more with less, and that their processes are so much more efficient than Intel's processes. I think it's always been a two man race, with the advantage shifting from one side to the other. As long as there is enough demand to go around, I just don't see Intel wanting to sacrifice their own profits to "bring AMD down". It's better for Intel to use the capital to improve their own businesses and compete with their strengths in manufacturing, as well as in the size of their design teams (and as you say, their stock valuation impels them to be profitable as well). I have no doubt that AMD has the potential to continue growing in size and power, but they also have the potential to stumble and fall. Intel can't concentrate solely on AMD at the expense of the rest of the market. They still need to invest in emerging markets, they still need to maintain the consumer's perceived need to upgrade their PCs, and they still need to compete in newer markets with communications, embedded products, flash, chipsets, and other IC devices. AMD is not the only stumbling block in Intel's world. I think the biggest mistake for Intel would be to run the business as if they were. wbmw