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To: Mike M2 who wrote (41209)	12/4/1998 12:33:00 PM
From: DJBEINO	Read Replies (2) \| Respond to of 53903

Intel, Other Chipmakers Rise Amid Optimism About Strong Sales Bloomberg News December 4, 1998, 9:00 a.m. PT Intel, Other Chipmakers Rise Amid Optimism About Strong Sales Santa Clara, California, Dec. 4 (Bloomberg) -- Intel Corp. and other semiconductor stocks rose today amid growing optimism that strong sales of personal computers and networking equipment will sustain the recent boom in chip sales into 1999. The shares of Intel, the world's biggest chipmaker, rose 5 3/8 to 114 7/8 in midday trading of 10 million, making it the third-most active U.S. stock. Earlier, they reached 115. Memory- chip maker Micron Technology Inc. rose 2 1/8 to 48 1/2. Intel rival Advanced Micro Devices Inc. rose 1 3/8 to 30 7/8. Chip stocks have been gaining in recent weeks amid signs that holiday sales of personal computers are booming. Now, more analysts and investors are speculating that sales could remain strong after the traditionally robust fourth quarter. Several analysts raised ratings on chip companies yesterday, and others held conference calls to reiterate bullish views. ''Intel's results could be stronger than expected in the first half,'' said Claude Hazan, an analyst at CE Unterberg Towbin in San Francisco, who rates Intel ''buy.'' ''People don't want to be caught on the wrong side of this rally.'' Optimism about chip stocks has been building since October, when PC sales started to take off. Later, it became apparent that Asia's economic meltdown and slowing growth elsewhere in the world wouldn't hurt sales of communications equipment -- another big market for chips -- as much as expected. Room to Rise Analyst Dan Niles at BancBoston Robertson Stephens yesterday held a conference call where he told investors why he thought many chip stocks had more room to rise. Among his favorites are Intel, Micron, Texas Instruments Inc., and MIPS Technologies Inc. ''Intel continues to knock the cover off the ball,'' Niles said on the call. He rates Intel shares ''strong buy.'' In another endorsement of the industry's return to health, analysts at NationsBanc Montgomery Securities raised their rating on National Semiconductor Corp. to ''buy'' from ''hold.'' National Semiconductor makes chips that compete with Intel's, as well as semiconductors that go in communications equipment. National shares rose 1/16 to 16 11/16. Intel said in November that fourth-quarter sales will rise 8 percent to 10 percent from those in the third quarter. The company's manager of investor relations, Alex Lenke, repeated that forecast late yesterday. Some analysts think Intel's outlook may be conservative, given the strength of the PC market. ''When they give forecasts, their numbers are always conservative,'' said Hazan at Unterberg Towbin. ''Intel will beat Wall Street estimates by a nickel this quarter.'' Santa Clara, California-based Intel is expected to earn $1.05 a share in the fourth quarter, the average analyst estimate compiled by First Call Corp. That's up from $1.74 billion, or 98 cents, a year ago. ''People are seeing the earnings momentum come back into the stock and want to own it,'' said Phil Schettewi, managing partner at Loomis, Sayles & Co. in Washington, D.C., which owns Intel shares and has $4 billion under management.