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

To: Qualified Opinion who wrote (176544)	1/14/2004 5:47:57 PM
From: Qualified Opinion	Read Replies (1) \| Respond to of 186894

Leading edge 300nm manufacturing equipment unit costs more than the 200nm equipment unit.

To: Qualified Opinion who wrote (176544)	1/14/2004 9:17:22 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 186894

The number can be revised up in a healthy market, just like it was revised down several times during the bust. If INTC has revenues of around $30B for '04, and spends only $3.8B(midpoint of estimate) on capex, that is only 12.6% of revs, well below the long-term average of mid-teens to low 20's in terms of capex spending. IOW, they would probably have to revise up if market conditions remained strong. The number simply cannot stay down there at that level too long should INTC want to remain at the head of the pack. INTC is only in the position of being enormously profitable because it spent large sums (7.3B in '01) to stay ahead. I do not think this lesson will be lost on competitors.....or for INTC for that matter.