Zeev's Turnips Patch-No Politics (ZEEV)

[Zeev Hed]

The increase in profit margins does not come from "squeezing" suppliers but from better utilization of existing capex (plants). Whether or not they make a chip they have to charge about $1.2 B per quarter to depreciation, that does not increase when the plant is working three shifts and that is more than 1/3 of the cost of sales (actually 36%). Your comparision table is also against updated forecasts by INTC, you should do the YOY or even the QOQ comparisons. The third quarters is not the most robust either. I thinkk that as time passes, INTC is going to narrow the forecast toward the top of the range, and that will provide additional impetus for the stock to climb further.