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 : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Jack Hartmann who wrote (4999)	1/17/2003 11:48:35 AM
From: Jack Hartmann	Respond to of 25522

BoA on INTC and capex Mark F. FitzGerald Intel Lowers Cap-ex – Again * Banc of America Securities LLC currently maintains a market in this security and otherwise purchases and sells securities of this company as principal.: AMAT, NVLS, KLAC, INTC. * Intel (INTC, $17.95, Neutral, covered by Doug Lee) announced during yesterday's conference call that they are planning to spend between $3.5 and $3.9 billion on cap-ex for 2003. This is down 21% from the $4.7 billion Intel spent in 2002 and down 49% from $7.1 billion they spent in 2001. * In 2002, Intel spent 50% of its cap-ex on manufacturing equipment. Intel expects to spend 50% of its cap-ex on manufacturing equipment in 2003 as well. This is a source of additional disappointment for semiconductor equipment companies, as there has been anticipation recently that Intel would increase spending on equipment relative to overall cap-ex this year. * The cuts suggest that Intel expects to spend $1.75 to $1.95 billion on equipment in 2003, about $400 to $600 million less than it did in 2002. * Intel intends to focus 90% of its cap-ex on 300mm, 90nm technologies. This means that semiconductor equipment companies with strong portfolio of leading edge products, such as Applied Materials (AMAT $15.36, Buy), Novellus (NVLS $33.45, Buy) and KLA-Tencor (KLAC $39.65, Buy) will mainly benefit from Intel's spending plans. * The timeline for Intel's 300mm Fab 11x and Fab 24 remains unchanged and none of the semiconductor equipment companies are seeing “pull-ins” of orders for Intel's Fab 24. * Intel's cap-ex as a percentage of projected revenues for 2003 is at 14% (compared to 18% in 2002 and 27.5% in 2001). It is expected that spending at Intel will stall at current levels for coming year. Intel now accounts for ~17% of the global spending on semiconductor equipment. cnet.com Jack