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

To: Stattrader who wrote (49814)	3/5/1998 8:46:00 PM
From: REH	Respond to of 186894

Executive Briefing By Roy Asfar Executive Editor, ChannelWeb -------------------------------------------------------------------------------- Thursday, March 5, 1998 Here's a shocker: Intel's eye-popping earnings warning, despite the doomsday-like chill it sent over technology stocks on Thursday, has three underlying dynamics which could prove positive to your business over the longer haul. As the company said late Wednesday night, the company blamed weak OEM demand in projecting that first quarter revenue will likely be 10 percent below Wall Street's expectations . And-mathematically fitting-the company also shed about 10 percent of its stock value on the news , and other industry stocks took major hits in sympathy. But yet, there are reasons to look at the silver lining behind Intel's cloud. Here are the three: 1. CHOICE: With the emergence of low-priced chips, pricing pressure will continue to be an occupational hazaard for chipmakers. And with competing chips from manufacturers such as AMD--now enjoying a long-needed shot in the arm thanks to a manufacturing agreement with IBM --and National Semiconductor, VARs get the always-appealing "choice" in chip technologies. 2. CHANNEL ASSEMBLY: With the potential efficiencies brought by build-to-order, perhaps thinner order rates will become the norm for Intel? Lets face it: Any just-in-time strategy delivers bang for the buck to builders and sellers, no matter what the industry. The pain, at least in the near term, has potential to be local only to suppliers like Intel. 3. THE "PARANOID" FACTOR. As Andy Grove likes to say, the company may be facing one of his self-described critical "inflection points," and is about to move to a new way of doing business. Intel was once thisclose to being rendered obsolete as a DRAM supplier and morphed itself to glory days. And as recent performance indicates, this is not the first time Intel jolted Wall Street, or the industry, so lets simply trust Andy to pull another rabbit out of a hat. No doubt about it, when Intel sneezes we all should be a bit concerned about catching a cold, but (if) as these factors gel, we may all grow a little more secure about a little pain.