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

To: Jay who wrote (41617)	12/6/1997 12:50:00 AM
From: Jeff Fox	Read Replies (7) \| Respond to of 186894

JB, re: "I bet on the fact that Intel will be making >$500 on a $1700 PC" Don't know about that, but I do know that this company is growing its share of motherboard functions and looking to expand into related fields such as set-top, OEM software and digital imaging. They are very much in control of pricing and unit growth. I can hardly believe this past year and this coming year for product value enhancement. The year began with Pentium 166's, P-200 as the premium. They did a flawless transition to MMX, sold it in volume, are now preparing to phase it out after a single year! Klamath had a flawless introduction and production ramp first into business machines in May, then into the consumer boxes in September. PII is already at 25% of total units nine months from introduction. Notice the silence about Intel production problems? This is because of impeccable execution. WOW! Price points are spot on plan regardless what the news writers would have you believe. Now for 1998 Intel will drive PII through the desktop product line and even put it at the top of the notebook line. Cost will fall faster than '97 as the volume shifts to .25 micron technology. We will see a new set of PII based product across all market segments, including "segment 0" with the top end at or above 450MHz. 1998 will see Intel initiatives in PC/TV and digital imaging designed to drive these into real volume application. Intel will enter the graphics accelerator market with a mass market solution rumored to be top functionality, and begin acquisition of graphics market in much the same mold as the chipset evolution. Eventually we will get Win98 and NT 5 (God help us to motivate Gates!). Which will unleash the AGP port and other PII capabilities. NT 5.0 will bring unprecedented gains to office manageability with "instant" configurations and enhanced network control. Network hardware will grow to allow universal access to corporate data. This combined with all the new segment zero "terminals" will accelerate the NT server boom, servers that will be dual and quad PII boxes. Meanwhile, as its said, this is not the real story for this next six months. While we chatter the shape of the servers and workstations of the millennia are being determined though design wins, strategic alignments, software development and corporate commitments. Sure wish I had privy to this effort, but the hint I do get all point to unprecedented success for Merced and IA-64 running all significant operating systems, CAD tools, and database engines. I can't think of anything similar since the IBM 3090 mainframe. Intel is willing the 64 bit war now! JB, I should say all the above is only my opinion. Get your facts from the companies. But I'll say its a good bet, and a very good bet that we will see a much revenue bigger company with world class profitability. Jeff