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

To: Jay who wrote (41070)	11/25/1997 11:20:00 PM
From: Paul Engel	Read Replies (1) \| Respond to of 186894

Jay - Re: "...the Silicon Valley real estate will have to come down to more realistic levels following layoffs..." Wholesale layoffs are generally a reaction to a screwed up buisiness operation or unanticipated market conditions. Currently, Intel is by any measure (except their own), outrageously profitable - even in spite of their 58% gross margins last quarter, despite steep price reductions. AMD and Cyrix, on the other hand, have been losing money or have been only marginally profitable for the past 5 or 6 quarters. I have stated before that I think Intel's agressive price cuts and their ferocious determination to establish the Pentium II/Slot 1 as a defacto (proprietary) standard is meant to maintain major market share and do serious financial harm to AMD and Cyrix. If and when the damage is done, it will probably be AMD that is hurt and will have to cut staff. They have compounded their own difficulties with their widely publicized yield problems. Cyrix will have at least a 6 month holiday with NSM - until NSM can figure out the real financial situation of that company. Thus, I wouldn't expect any response from NSM/Cyrix until the latter part of next year. Paul