Intel Corp (INTC)

[mike306oh]

Re: AMC - My 2 penny thoughts

http://www.detnews.com/2005/technology/0504/30/tech-166897.htm

My 2 penny thoughts:

Today's AMC announcement is in agreement with latest Dell announcement that they will transfer again some 2,000 jobs to India, for a total of 10,000 jobs. Plus, IBM's recent sale of its computer business to China, short-term will also help define the low-cost as the main drive for the next generation computers.

If this turns out to be true, by bringing down the price of a computer to these levels, short-term this will:

1. Spell trouble for chips and computer makers, and

2. Give some extra market to Internet, computer assisted fix and mobile phones (using VoIP, VoWi-Fi, and VoWiMAX), and high speed Internet providers.

Given the increased cost of a chip fab, it's hard to imagine how significant advances in higher speed computers will be possible short-term. I see a short time frame in which there's going to be a stagnant business at companies such Intel. This might be the case until next generation of ultra-high speed (low power) computers (most probably using all integrated optical chips) will come out. Since that's at least 10 years away, in the mean time I believe the chip business will become the villain (rather than the darling, as in the past) of the investment community.

Best to you all,

Mike