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

To: Paul Engel who wrote (55757)	5/18/1998 5:13:00 AM
From: Jules V	Respond to of 186894

LOS ANGELES (Reuters) - Intel Corp., whose core microprocessor business is under severe pricing pressures, says it will form a stand-alone networking business and make those operations a higher priority. nt.excite.com "It has become increasingly clear that we must continue to focus on our core Intel architecture and diversify into new businesses if we are to re-energize Intel's growth in the future," Intel President Craig Barrett said in a statement. PC units are still growing at a rate of 14 percent to 15 percent, but last month, Dataquest forecast that for the first time since 1986, 1998 PC revenues will slow to 6.4 percent. "Debating Intel is like debating which candidate will run for presidential office," Jim Barlage, a Salomon Smith Barney analyst said. "The arguments are not new and you can continue to raise them ... Yes, there are channel inventories, but those will be well absorbed by the end of this quarter. There is a chance for Intel to beat lowered expectations in this second quarter. We are buyers of the stock here."

To: Paul Engel who wrote (55757)	5/18/1998 12:29:00 PM
From: Larry Loeb	Read Replies (3) \| Respond to of 186894

Paul, It's interesting that Dvorak compares debate about a technology improvement (the move from 8 bit) to a debate about the need for further technology improvement. He makes some good points relative to the current status quo, however, his vision of the future is limited to PDAs. I agree that at some point the technology improvements may exceed the needs of the public (both corporate and home users), but IMO that will happen some time after voice recognition, handwriting recognition, and other ways of communicating with computers exist. At that point, penetration will be similar to that of TVs. The challenge for Intel is to stay on the leading edge of technology with proprietary, leading edge technology. JMO Larry