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

To: TCGNJ who wrote (52554)	4/9/1998 7:59:00 PM
From: ed	Read Replies (2) \| Respond to of 186894

People on this thread should be realistic, no emotion . People said at the end of 1999 INTEL will be $140, and my response is if Intel can hold its current price at the end of 1999, I will count that Intel's managers had done a very good job. Have you ever ask yourself why Intel will be $140 at the end of 1999 with the current business environment that at the high end Alpha is already in the market and will not stand still while Merced won't be taped out at the end of 1998 , and won't go into production mode at the third quarter of 1999 if everything goes smooth, of course it may delay to 2000 if some bugs happen in the design or manufacture. At low end, AMD is competing with Intel with its K6 and K7 series and always maintain a price which is 25% lower than Intel's similar chip. With yield being improved and IBM offers additional fab capacity, I will see AMD's profit margin as well as revenue will improve gradually starting at the next quarter. National just announce its new strategy, i.e PC on one chip, which means the box makers can save a lot of money for other components on the motherboard, the speed of system will be improved, and manufacturing of systems will be simplified and the yield will go up, all end with lower cost for PC manufacturers and lower PC price while higher profit margin for box makers and expanded PC market. Thinking about the recent sub $1000 PCs, without it, the peneration of PCs into US family won't be 40%, without the Sub$1000 pcs, there won't be Yahoo or AOL. NSM just had an agreement with TSMC that TSMC will manufacture up to 10 Million units of CPUs for NSM per year which is about 13% of worldwide PC delivery in 1997, NSM is no joking !!!!!!! INTEL used to be a company of innovation, but with its recent business model, it became a company which blocks the advancement of human civilization. With high price policy, the students, the average family can't not afford PCs, most people can't enjoy the fruit of information technology as a result of high PC price. Companies like MSFT, CSCO , ... can't grow their business anymore as a result of high PC price. There is always a way to grow your business in any kinds of business environment, if the Managers think dynamically. INTEL probably still remember more than 10 years ago, when INTEL lost all its memory business to its competitors from Japan . The same situation is happening right now , if everybody is changing but Intel did not, there will be no surprise that INTEL will lose its CPU business five years down the road, but this time the competitors came from US. As to the cash investment from IBM to AMD, I see that already happened, but the investment is not cash but free wafers manufactured by IBM with IBM's fabs for AMD, with the circuits designed by AMD. AMD get free wafers and IBM get CPU chips at much lower price .