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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: MileHigh who wrote (18191)	3/26/1998 10:53:00 AM
From: David Rosenthal	Respond to of 70976

MileHigh, Intel has decided to use some of its cash to buy back more stock. Unused capacity, i.e. this plant, would drain resources. I agree with you that this announcement suggests that they don't need the capacity for at least a couple of years. As far as U.S. companies go, it stands to reason that declining margins and the current fixation on quarter to quarter results will push some companies into delaying some capital expenditures to make the next quarters look better. I think 1998 is going to be a very bad year for most semi-equips (the smaller feature size plays should have better financial results than the others). Dave