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

To: GVTucker who wrote (178713)	7/16/2004 6:27:14 PM
From: Amy J	Respond to of 186894

GV, okay I am beginning to see where your point is. However, here's where we may differ: RE: "The only reason for Intel to intentionally build inventory in a quarter is if they're capacity constrained. Again, that stated specifically that they're slowing production, so they're clearly not capacity constrained." Sounds to me like they unintentionally built up inventory due to increased yields. The question is why they didn't slow down a month earlier. I am not knowledgable about the impact of depreciation like you are, but if I were close to my capacity line, I'd throw the switch in the direction of increased inventories. Were they close to their capacity line? But a completely different explanation that's independent of capacity altogether, would be what Saturn said in a post, something about you can't do something to a Line when it's ramping up due to yields, so increased inventory be danged. Btw, I'm not especially confident about H2 - who is to say. I think it's too hard to call. I'm in it for a much longer spell than H2 - through longer leaps and shares. What is clear to me though, is a lot of gear is getting old out there. I also think SMBs are coming online - though sw enterprise looks dull. Regards, Amy J