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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Sarmad Y. Hermiz who wrote (22046)	3/10/2005 1:15:28 PM
From: Donald Wennerstrom	Respond to of 95761

Sarmad, That is good news from Komag. I hope that INTC will follow through tonight in their update with positive news. NSM just announced their earnings, and apparently the market liked what it heard. NSM bouncing up 3 to 4 percent on the news. Don

To: Sarmad Y. Hermiz who wrote (22046)	3/10/2005 5:15:15 PM
From: Donald Wennerstrom	Read Replies (1) \| Respond to of 95761

Sarmad, I was just reviewing the data you posted earlier from Komag, Message 21120833 <<The Company is experiencing strong demand from all four major disk drive customers.>> implying that PC's are doing "just fine". Not so, says CSFB from their review of INTC posted yesterday. <<• 2005 outlook more challenging. CSFB is projecting slowing growth in PCs (8% long-term growth, below the 11% in 2003 and 2004). We believe INTC could lose revenue share to AMD (in both servers and desktops) due to AMD’s increasingly equivalent offerings and substantial ASP gap to close (~40%). ASP and market-share erosion combined with overcapacity risk could weigh heavily on INTC’s profitability in 2005 and beyond. • Outlook. We rate INTC underperform given its weak secular product positioning within the broader semiconductor industry, combined with risks from slowing PC unit growth and competitive pressures on ASPs and market-share in 2005. However, if INTC is successful in its strategy to move from selling processors to platforms (in desktop and servers), INTC could see a strong rebound in 2006/07.>>