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

To: Tony Viola who wrote (79126)	4/14/1999 8:20:00 PM
From: Ram Seetharaman	Respond to of 186894

While Intel's profit margins may be squeezed in the PC business, Dan Niles is wrong if thinks INTC is going to go down. INTC has 85 % market share and it is going to take some awesome kind of competition to wipe them out (if all its competitors band together and wipe'em out, which is highly unlikely! - when they themselves will have a hard time to survive in a price war). Like anything else in the long run, even the sub $ 700 PC market will only have 3 or 4 players in six or seven years (IBM's Panjandrum Gestner's quote "The PC era is over" is hard to even imagine, when new markets are spawning every day due to infusion of the internet!) INTC will still be around making chips. AMD will probably disappear before INTC, because they can't turn a consistently decent profit margin. AMD stock price is living proof - staying about the same for 15 years! I am also perplexed that Niles thinks CPQ is a "buy" (when it bought the fat "Digital" last year and expected it to help its bottom line - what a goof!), while INTC is a sell on CNBC for beating the estimates (and telling the truth that next quarter may be bland). He was wrong on CPQ, when he predicted it to reach $ 60! He is wrong on a INTC sell! Hold may be a better rating! INTC won't even go below $ 54 in the near term and may jump back with a vengeance towards $ 80 in a matter of days! The PC industry is too dependent on INTC to let it down. Too many small outfits will get hurt if INTC gets hurt and I don't see that happening.