Intel Corp (INTC)

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Re: What do you predict Intels EPS to be over the next 3 years?

Close to what you predicted. $1.50 to $2.00. The other aspect is what kind of P/E ratio will it get during those periods. I think on a sunny day and with a good economic environment, Intel will see between 20 and 25. In the current environment, probably more like 17 or 18.

Analysts have moved current estimates down to $0.83 for this year and $1.06 for next year. I think it could be that low if Intel is really pressured into a price war, but I also think it ignores any upside from better platform adoption, such as that from Viiv or vPro. I also think it ignores possible upsides from Apple, or the flash memory joint venture. I also think Intel's earnings power is stronger now with 1,000 fewer high paid managers and an X-Scale team, not to mention any other efficiency improvements over the next few months.

Taken altogether, Intel may have an opportunity to beat current estimates, and move the stock up. I think a price of $25 by year's end is not impossible, assuming the outlook starts to improve. We'll know this quarter just how much pent up demand there is for Woodcrest and Core 2 based processors. I think it could be substantial.