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

To: Duker who wrote (24154)	9/11/1998 5:45:00 PM
From: Big Bucks	Respond to of 70976

Duker, I agree with the article I referenced to Tony V. An improvement over Q2's sales, to be sure, but enhanced by cutbacks, depreciation, and flat to diminished capital investment in new fabs expansion . I am not very bullish on INTC as a "growth" company over the short term. They are doing the right sorts of business management activities but IMO they are getting more competition for the CPU markets from IBM, AMD, NSM, Samsung, Sun, Motorola, STM, HP, etc. Some of these competitors will be 1-2 generations ahead of INTC shortly in various markets like servers and information appliances with faster/cheaper system on a chip devices/CPU's. Maybe INTC can rely on their other core business operations to help maintain growth momentum. I have argued that due to their huge infrastructure and overhead costs associated with doing business on a world-wide scale that INTC incurs tremendous operating expenses and needs to maintain their margins at maximum. It seems their margins have been decreasing or flat for about 18 months or so now, which means they need to increase their efficiency of manufacturing/operations, which is exactly what they are now doing. I give INTC credit, they are a power house to be reconned with, but until international markets are again in growth mode they likely won't attain their past "glory" over the short term. Just my opinion, BB