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

To: StockMan who wrote (41411)	12/4/1997 12:59:00 AM
From: Joey Smith	Read Replies (2) \| Respond to of 186894

All: At least 1 anal-yst thinks Intel stock will have a good 1998: joey Blue Chip Techs Poised For 1998 (12/03/97; 5:00 p.m. EST) By Gabrielle Jonas, TechInvestor NEW YORK -- High-tech investors can expect 1998 to be a blue-chip year, led by Intel and Microsoft, an analyst said on Wednesday. And small caps, even though they have been performing well, could be steamrolled by blue-chip companies, the analyst said. But both camps will have to fear blips and upheavals in the world economy, he cautioned. Overall, the tech markets should do well in 1998, said John H. Laporte, a managing director at T. Rowe Price, in New York. "We believe it is going to be a good year for tech stocks -- although we probably need a favorable market," he said. "1998 will be led by Intel's product cycle and Microsoft Windows' products cycles," said Laporte. "Those cycles will drive demand for PCs and software, causing a ripple effect for semiconductors." But prices have to stay down for the ripple effect to keep going, Laporte said. "If PC prices are under $1,000 -- whoever makes them -- that will drive related software sales, and that's how the industry will feed itself," he said. However, small companies will be more vulnerable to the voracious appetites of the large caps, Laporte said. Small companies used to feed off the blue chips, but now they often compete with one another, he said. But both have to fear the world economy. "A lot of tech stocks have been destroyed, particularly in the semiconductor arena," Laporte said. He added that the chip sector will be undergoing a "dicey adjustment" for the next three to six months in response to Asia's woes. But the effects from the Asian crisis should be minimal in the long run, he said. While large tech companies should fare well, the performance of small caps are a wild card. "Holding the key for the next year or two is the relative earnings performance of the small caps," Laporte said. "The last two quarters have been superb. If that can be sustained, we'll get a different return, but for now, certainly, it's not clear if that's going to happen."