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

To: Diamond Jim who wrote (80541)	5/7/1999 9:57:00 AM
From: Process Boy	Respond to of 186894

james - ""If you look at Intel over the past decade it has grown at around 30% per year," Barrett says in an interview. "We're not going to grow at 35% or more - we're just too big." This is nothing new. Intel has said for the last couple of years the growth would slow from stratospheric levels, and long term gross margins should be ~50%. It would be unreasonable to believe that a company the size of Intel could sustain such rates. However, there has been a pleasant upside surprise, that being gross margins are still in the high 50's. Also, I believe reasonable long term growth rates are very achievable. Maybe not 30% a year, but healthy none the less. I actually believe the value PC segment very well may expand the market, and with Intel's attention to the cost side, a healthy profit can still be made. Also, Intel seems to have a solid plan to keep extending into the higher end, with its inherent higher margins. Another thing to consider is Intel's ability to expand into non-traditional segments and ventures. This, undoubtedly, takes a little more "faith". But as I've recently said, I have a lot of faith in Intel's methodology to scan the landscape, and make appropriate attempts in these areas. There may be some slow performers, and even some failures in new ventures, but I'm in for the long haul, and my take is Intel is well on its way to becoming a $50B somewhat more diversified company. Of course, my stated time frame is long term (>5 years), and I can't predict how long it will take to get to the above milestone. Finally, as a shameless plug for my gig, Intel's leading edge process technology has got to be worth something. I have a big personal stake in that the designers and innovators in my company keep "us" fed with leading edge products to produce. I guess I'm putting my money where my mouth and my faith is. PB