Joe Osha
Joe Osha
apply believe blunt continue desktop effort further intel markets mobile negative pressure result shares
We continue to believe Intel will apply competitive pressure to AMD in the desktop and mobile markets in an effort to blunt further shares gains, even if the result is negative for Intel's own profitability in 2006.
choices consequences design expensive last november resulted seeing wrote
We wrote last November that Sony's design choices for the PS3 had resulted in an expensive and difficult-to-manufacture product, and we think that we're seeing the consequences of those choices play out now.
appears building data dominant inventory less points question result stocks whether worries
One of the dominant worries here is the question of whether we're going to see any building of inventory that will result in 1Q weakening. But as the data points have rolled in, that appears to be less and less the case. That's pretty important, and you can see it, in particular, in some of the communications stocks that are moving.
bursting clear company exceeded extent ground intel losses lost outlook posting result revenue since weakest
In posting the weakest Q4 revenue result and Q1 outlook since the bursting of the bubble, Intel has made it clear how much competitive ground the company has lost to AMD. The extent of the losses has exceeded our expectations.
company incapable intel mean
Just because Intel has faltered does not mean the company is now incapable of executing.
believe continue cycle internet investment second year
We continue to believe that we are in the second year of a 5- to 7-year investment cycle in Internet infrastructure.
consumer discrete graphics holidays processing push sales selling suffer unit
Without the consumer Vista push for the 2006 holidays selling season, we think that discrete graphics processing unit sales could suffer slightly.
estimates march points raising strength
We're not raising our estimates for the March quarter, but the strength at Motorola points to the possibility of upside.
added although capacity change companies fourth happening less negative past rate terms themselves worst
What we see happening is a bottoming to the rate of change in the semiconductor business, which has been negative and less capacity being added by the fourth quarter, which is also good. So, although companies themselves are still very conservative we think that the worst is past in terms of the downturn here.
adjustment expect fact gains given impact low market negatively next numbers product share stock surprised
We are not too surprised by AMD's announcement and do not expect the adjustment to numbers to impact the stock negatively at this point. Given the fact that AMD's product lineup at the low end of the market is more competitive than Intel's, we expect to see market share gains in the first part of next year.
appears company difficulty earnings growth high imagining investor level moving percent raise rate recovery stock sufficient
Valuation for the stock appears significantly high for a company with a sustainable earnings growth rate of 10 percent to 15 percent. We have difficulty imagining any second-half recovery that could raise earnings, and investor expectations, to a level sufficient to keep the stock moving up.
investors love
We'd love to tell investors that we anticipated Intel's problems, but we did not.
both business decline dramatic flash leaving memory overall pick quarter rate second top
The rate of decline for both the flash memory and communications business in the second quarter could be more dramatic than the overall top line, leaving it to the microprocessor business to pick up the slack.
believe coming forced intel pressure pricing respond
We believe that Intel will be forced to respond competitively to AMD in the coming year, which may put more pressure on Intel's pricing than we had expected.