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

To: gnuman who wrote (47027)	2/3/1998 7:52:00 PM
From: Fred Fahmy	Read Replies (1) \| Respond to of 186894

Gene, <Do you still feel the market environment for Intels products are unchanged?> I never suggested that Intel's market was not changing. It is changing....for the better. Intel is making inroads into the high end like never before. This is a largely untapped opportunity. They stand to dominate the high end in the same way they have dominated the low end for so many years. IMO, this is a much more significant fundamental change than Segment 0. The low end is less profitable but Intel will get more than its fair share of profits. In fact, it looks like right now Intel is the only company making money selling low end processors. Yes indeed, the popular belief is that Segment 0 will hurt Intel. That Intel has missed the boat. That Segment 0 is the future of computing. The contrarian view is that Intel will do very well in the low end while continuing its push at the high end. Future growth will come from all segments but especially at the high end where everyone major technology company has lined up behind Merced. <But I can't see Intel as a visible participant in this. Dell, IBM, Gateway, etc. wouldn't be too happy. Besides, I believe Compaq will continue to leverage it's market position and Intels competition to beat down CPU prices. So the love/hate relationship continues.> I agree with the above analysis 100%. <Where will Intel's stock be in six months?> This irrelevant from my perspective. <Do you still feel businesses will continue to pay historically high prices for PC's?> The asp for Intel business machines will be firm with the potential to increase significantly as Intel penetrates the server, mini, and mainframe computer arenas. If your question is "will businesses spend less on average for entry level machines?", I would say "yes" but that this will be more than compensated for by increases at the high end. <As an investor I'd be more interested in these answers than all the cheerleading that dominates this thread.> As an investor I'd be more interested in a rational analysis of Intel's >b>overall business instead of hearing only about the continuing irrational mania surrounding Segment 0. Good luck, FF