Zeev's Turnips Patch-No Politics (ZEEV)

[basserdan]

indeed. intc looking like its going to put in 3 black crows on the daily. of course, that's often good for a bounce before continuing also ...
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Hi TJ,
Speaking of INTC, did you see Fleck's comments w/r to them, Dell and AMD that was posted here last night? If accurate, that would be something worth crowing about. <g>


"Trickle-down trouble in tech and Intel
Back to present times, and technology in particular, I wanted to spend a minute on Intel (INTC, news, msgs), a company that has evolved to where it is basically in the marketing business. I have made no secret of my belief that Intel is in trouble, both in the near term and long term. (See my April 12 column, "Is Seagate's swoon bad news for Intel?")

My longer-term conclusion has been that if Advanced Micro Devices (AMD, news, msgs) is widely perceived to have swooped Intel on the high end, that perception will do a lot to undercut Intel's reputation as a technology leader. That will affect not only the company’s earnings but the price-to-earnings ratio and expectations of future profitability and growth.

Along that line, Intel's halo came in for a little tarnishing last Tuesday. According to work done by an analyst at Susquehanna Research (I'll give the guy the benefit of the doubt and not call him a dead fish, since I haven't seen his work before): "Channel checks indicate that Dell (DELL, news, msgs) is designing two dual-processor servers based on AMD's Opteron processors."

Intel bulls disagree that Dell will ever endorse AMD's products, but I believe it is only a matter of time. Dell is facing competitive pricing pressures from Hewlett-Packard (HPQ, news, msgs), and customers are beginning to demand the Opteron products. When Dell endorses the Athlon and the Opteron, it's essentially going to be game over for Intel's image. This will, as I said before, impact its earnings and multiple. I continue to believe that the time bomb is ticking away for Intel." #msg-3488861