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

To: brushwud who wrote (177607)	4/16/2004 4:19:13 AM
From: Amy J	Read Replies (1) \| Respond to of 186894

RE: "Intel is an example of a capital-intensive business with a lot of depreciation." brushwud, how do semiconductor companies (Intel, AMD, etc.) generally do in an inflationary economy, given the capital intensive nature of their businesses? Keeping production costs low and increasing yields probably becomes an even stronger focus. If they can keep their production costs lower than inflation, thru yields and clever manufacturing tricks, it probably minimizes the risk compared to a company that's locked into costs they can't reduce. The one good thing about inflation is, companies aren't under so much pricing pressures since they have more pricing power. But some of the PE's during the 70's were as low as 8. Regards, Amy J