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EA OT - INTC
EA taking a -5% beating on lower forcast for holiday
season. But then, it's run up so far in the past year. INTC
continues to rise 1%+ day after day. At first, it was a very good
CC, more lately, it's the persistent widespread rumor that Apple
may drop Qualcomm in favor of INTC in some of its important
products. I don't know the internals or details - could be that
nobody does, given that it still has rumor status, AFAIK. But I
think it points up an strength in INTC: their flexibility. Owning
their own foundaries, maintaining 'die shrink' time leads (altho
there have been hiccups and delays on this in the past - there's no
telling what problems may crop up in 'perfecting' the shrink - and
I would think that becomes more prominent as each shrinks mean
everything must become more dense, leading to greater problems with
leakage, etc. - Just my non-engineering speculation), coming up
with unique products, my guess is that they can 'tailor' an offer
to a customer like Apple, making it an offer it can't refuse,
capex-wise. One would think that such gymnastics to win business
would lead to AMD-like trouble in terms of thin margins (AMD is
crashing, despite being in all the consoles that will be sold this
Christmas - who can resist an Xbox One X, with the capacity to play
games in 4k? (I can, as the Xbox One S has a 4k disk player, 4k
streaming capabilities, backwards compatibility with lots of Xbox
360 and some orig. xbox games, all for $200 on sale, and Black
Friday may see lower prices - a value proposition.) But somehow,
INTC managed to turn a handsome profit last quarter. But I thought
at about $40 it looked pricey. We're quite beyond that now. Makes
me wonder how much up and down movements with stocks currently has
to do with earnings jitters - outsized rewards for the winners,
outsized punishment for the losers?
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