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

To: Harry Landsiedel who wrote (69626)	12/8/1998 12:54:00 PM
From: Tony Viola	Respond to of 186894

Harry, we're getting so jaded these days, nobody's put up the Morgan Stanley article yet. I wonder where they got the 8 to 10% <G> cbs.marketwatch.com Analysts bullish on chips By Binti Harvey, CBS MarketWatch Last Update: 11:31 AM ET Dec 8, 1998 Tech Report NEW YORK (CBS.MW) -- Analysts rallied behind semiconductor shares Tuesday, predicting the current bull run will outlast the holiday season. Growing expectations of sustained strength in the sector have driven the Philadelphia Semiconductor Index up about 75 percent over the past eight weeks. Tuesday, Intel Corp. (INTC) hit an all-time high at 122 5/16. Morgan Stanley's Mark Edelstone, has been bullish on the semiconductor industry since the second quarter, and he believes the group has entered a new bull cycle. "The PC-based semiconductor companies are enjoying the strongest uptick in demand, and we believe revenue for the overall semiconductor industry will grow 8 percent to 10 percent sequentially in the fourth quarter," Edelstone said. Edelstone raised price targets on eight chipmakers: Intel Corp. (INTC) to $150 a share from $130; Texas Instruments Inc. (TXN) to $100 from $85; Broadcom Corp. (BRCM) to $120 from $90; Rambus Inc. (RMBS) to $110 from $80; Xilinx Inc. (XLNX) to $80 from $70; Altera Corp. (ALTR) to $70 from $60; Lattice Semiconductor Corp. (LSCC) to $55 from $45 and Microchip Technology Inc. (MCHP) to $50 from $40. Scott Nirenberski of Credit Suisse First Boston issued his own positive comments in the wake of October's global semiconductor sales report. See Silicon Stocks. Nirenberski attributed the 3 percent increase year-to-date in microprocessor sales to strength in the PC industry. He further noted that while sales fell 22 percent in the historically weak October, the average decline for the month is 28 percent. Nirenberski increased his fourth-quarter earnings projection for Texas Instruments to 55 cents a share from 52 cents, citing accelerating demand from modem, disk drive and communications markets. Not all analysts are confident the industry's strength will survive past the fourth quarter. Ken Pearlman, semiconductor analyst for CIBC Oppenheimer, remains wary of potential negative effects of global economic weakness and increased production of DRAMs. "We believe it would be prudent for investors overweighted in the group to use this opportunity to lock in some of the recent gains by going to a market weighting or less," Pearlman advised.

To: Harry Landsiedel who wrote (69626)	12/8/1998 3:19:00 PM
From: Paul Engel	Read Replies (1) \| Respond to of 186894

Harry - Re: "Also, won't the decision to move up the conversion to .18 micron reduce cap. spending from earlier estimates?" No. Intel could REALLY reduce capital expenses by NOT CONVERTING to the 0.18 micron process. However, converting to the 0.18 micron will require some new stepper/scanners for the 0.18 micron layers, more thin film machines for the added metal and isolation layers, and possibly additional etchers and CMP equipment IF Intel wants to maintain the same number of wafers/month output in the converted fabs. Paul