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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: Jay M. Harris who wrote (4307)	1/5/1998 8:40:00 PM
From: Proud_Infidel	Read Replies (2) \| Respond to of 10921

Analyst Predicts Intel to Spend $5.4B on Chip Gear. techweb.cmp.com

To: Jay M. Harris who wrote (4307)	1/5/1998 9:19:00 PM
From: Ian@SI	Read Replies (2) \| Respond to of 10921

Jay, Not to worry that these sub $1000 PCs will cause fewer chips to be sold. First, a 16MB machine without a sound card, a video accelerator and a 15" monitor will be painfully slow when it comes to doing anything that the new purchaser might want to do. ... like surfing the web; playing games; using latest and greatest office suites (Office 97 or equivalents). I suspect they'll be content until they see their neighbour's / friend's / colleague's $3000 - 5000 PC whiz through something in milliseconds that takes them minutes to perform. Then the upgrades and the replacements will start fast and furious. Personally, I think we'll see a resulting wave of buying that will dwarf what's seen now. I'd guess that we'll have a good indication in about a year, possibly a little less. Ian.

To: Jay M. Harris who wrote (4307)	1/5/1998 9:40:00 PM
From: LLCF	Respond to of 10921

<However, the bad news is that these purchases are probably sub $1,000 PC's with lower semi content per unit.> Prices just keep going down...hasn't mattered much in the past. Soon that $1000 machine will have all the semi-content of the $2000 machine today... and so on and so on...as long as this keeps happening its GOOD for semi-equips right? Someday what used to be a computer will be included in your cell phone and people will still be worrying about INTC and AMAT's valuation being to high at 9 PE because a downturn is just around the corner...Oh wait thats now! DAK