"Rusty" wrote in message
om...
Article posted on Forbes web site.
http://www.forbes.com/markets/2004/1...ahoo&referrer=

"Intel (NASDAQ: INTC - news - people ) will provide a mid-quarter update
for the fourth quarter next Thursday. Earlier this week, Credit Suisse
First Boston downgraded the chip titan to "underperform" from "outperform"
and said the company may see increased competition from rival Advanced
Micro Devices (NYSE: AMD - news - people ) as well as an overcapacity for
processors. "While Intel will likely see near-term strength given
low-expectations, healthy seasonal build-demand, and improving
inventories, we would be sellers into the strength," CSFB said. "We
believe Intel will more likely continue to lose share to AMD (in both
servers and desktops) due to AMD's increasingly equivalent offerings and
substantial average-selling-price (ASP) discount. ASP and market-share
erosion combined with overcapacity risk could weigh heavily on Intel's
profitability." The research firm lowered its price target to $22 from $25
and said it "would use the potential near-term strength to swap out of
Intel and into Texas Instruments (NYSE: TXN)." In terms of chip demand,
CSFB said based on Intel's and AMD's current manufacturing plans, chip
supply will exceed demand by 11% in 2005 and 33% in 2006. "We would need
to see one or both companies pull back their plans to get more positive,"
it said. Shares rose 14 cents, or 0.66%, to $21.43."

"The Week Ahead by Peter Kang"

Looks like cpu pricing my be coming down in the near future if Market
forecast are right assuming that the overage will be in cpu chips.

Good news. Sounds like an overclockers dream
.................................................. ................................
http://www.needgod.com/