Intel Corp (INTC)

[SemiconEng]

Is Intel's flash business continuing to mend? There's a statement in the following AMD-centric article that was particularly interesting:
http://www.businessweek.com/technology/content/jul2004/tc20040712_4684_tc119.htm
Intel isn't completely missing out. After losing some flash market share to AMD last year when it hiked prices, Intel is gaining some back. Former AMD customers, such as manufacturers DBTel, Inventec, and Quanta, are returning to Intel.

Will we see the effects of this in the Q2 earnings report?


Depends on when (if?) they came back. Chip OEM sales contracts are usually negotiated with a delivery date for sometime in the future. Since intel doesn't record an OEM sale until the chips are delivered, it would depend on whether the delivery date could be counted as Q2, or Q3. My guess, IMO, is that since intel had depressed chip sales prior to Q2 when they stupidly raised prices, there probably was either sufficient flash inventory, or sufficient cpacity available to give Q2 delivery dates. I think there's a good chance this will lead to an upside Q2 surprise for all the "Intel doom and gloom" analyists, not to mention "others".