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

To: greenspirit who wrote (49136)	3/2/1998 9:59:00 AM
From: Paul Dieterich	Respond to of 186894

Lehman's on AMD (w/IBM) vs. Intel: Headline: Advanced Micro Dev: : Foundry Relationship with IBM Confirmed Author: M. A. Gumport, CFA 1(212)526-5368, Caroline Gangi 1(212)526-3754 Rating: 3 Company: AMD, INTC Country: COM CUS Industry: SEMICO Ticker : AMD Rank(Prev): 3-Neutral Rank(Curr): 3-Neutral Price : $25 1/8 52wk Range: $49-17 Price Target: $ 23 Today's Date : 02/27/98 Fiscal Year : DEC ------------------------------------------------------------------------------ FOUNDRY RELATIONSHIP WITH IBM CONFIRMED THIS MORNING; MIXED NEWS **************************************************************************** AMD CONFIRMS FOUNDRY RELATIONSHIP WITH IBM. This morning AMD announced a 2-year foundry relationship with IBM. Production is slated to begin in the third quarter of 1998 for the K6 chip. Rumors had already been circulating yesterday about a foundry relationship with IBM and a portion of the news is already factored in the stock. WE VIEW THE NEWS AS MIXED, BUT ON BALANCE, A POSITIVE FOR AMD. BAD NEWS. It appears that AMD continues to have substantial problems yielding parts and we still expect a difficult quarter for AMD. GOOD NEWS. AMD clearly remains committed to its x86 efforts and has convinced IBM that it's worthwhile to be their foundry. We think the foundry relationship should help AMD during the next 3 5 months to bring up substantial volume of higher speed K6 0.25 micron parts. (We haven't spoken to AMD today, but we assume this must be a 0.25 micron foundry) 3- Neutral Maintained. We are still very cautious on the x86 environment. It has become much more competitive and the key is shifts in market share. Changes could happen very quickly. Current situation is a high watermark for Intel. We believe AMD is still struggling with yields and earnings will be poor this quarter. If we could just believe that AMD would continue to struggle with yields of 0.25 through June/July, you would have to own Intel (INTC 95 5/16; 3) in a big way. Unfortunately, the situation is more complicated than that. We believe yields will become more favorable in April/May for AMD. ------------------------------------------------------------------------------ Disclosure Legend: A-Lehman Brothers Inc. managed or co-managed within the past three years a public offering of securities for this company. B-An employee of Lehman Brothers Inc. is a director of this company. C-Lehman Brothers Inc. makes a market in the securities of this company. G-The Lehman Brothers analyst who covers this company also has position in its securities.

To: greenspirit who wrote (49136)	3/2/1998 10:00:00 AM
From: Larry Loeb	Read Replies (1) \| Respond to of 186894

All, From this morning's San Jose Mercury News Talk is Cheap column (by Chris Nolan) mercurycenter.com Top 10 Signs You Work for Intel: 10. You lecture the neighborhood kids selling lemonade on ways to improve their manufacturing process. 9. You get all excited when it's Saturday so you can wear sweats to work. 8. You refer to the tomatoes grown in your garden as ''deliverables.'' 7. You find you really need PowerPoint to explain what you do for a living. 6. You typically eat out of vending machines as well as at the most expensive restaurant in town within the same week. 5. You think that ''progressing an action plan'' and ''calendarizing a project'' are acceptable English phrases. 4. You know the people at airport hotels better than your next-door neighbors. 3. You ask your friends to ''think out of the box'' when making Friday night plans. 2. You think Einstein would have been more effective had he put his ideas into a matrix. And, the No. 1 sign you work at Intel: 1. You think a ''half-day'' means leaving at 5 o'clock. Larry