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1.  

   

   Anonymous, Jun 15th, 2007 @ 10:49am

   
   

   You left out another possibility...the market has once again disconnected from reality and is ignoring all bad news. How else can you explain the market reaching new highs soon after a 0.6% GDP revision and an interest rate surge? Maybe that's why Morgan Stanley is warning it's clients to get out of stocks...the bubble's back.

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2.  

   Maybe some of the chip stocks aren't worth investi

   

   Sean, Jun 15th, 2007 @ 1:50pm

   
   

   Seriously, Intel's sales are a little bit above where they were ten years ago. Not really a growth company.
   AMD has had a half-way decent rise in sales during the same amount of time, but it's profits and earnings during the same time look like they're tracking a 9.5 on a richter scale the way they jump way up or way down every year.
   Maybe investors have figured out that these aren't reliable stocks to invest in.

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3.  

   the industry isn't going away

   

   andy, Jun 15th, 2007 @ 2:32pm

   
   

   i think the other way to look at it, is that both of the companies (intel, amd), although they're fiercely competitive, are still going to be around for a long time. the semiconductor market isn't going away, it's growth is just slowing. nevertheless, the trend is still a positive one.
   
   unless you're shorting their stock, intel is a good buy. even today, on the day this news came out, my fantasy portfolio shows my biggest gains on intel and i'm not planning to (fictitiously) sell tomorrow. it's a popular stock for many mutual funds because, like microsoft, it's stable and trends upward over the long-term.

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4.  

   PC sales not the dominant driver they once were

   

   Mike Hansen, Jun 16th, 2007 @ 9:13am

   
   

   The Intel/AMD personal computer segment of the chip business, while being still an important part of the semi industry, has become a commodity. No reasonable industry observer would expect double-digit growth in this commodity simply because a 10% or better year-over-year growth - to use a technical term - is "ginormous". High Def Video on the other hand has become the new driver - it's huge - and using another technical term - getting "huger". Furthermore, the SIA's track record on industry forecasting has been shown to be a cheap source of comedic entertainment.

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5.  

   Re: Still living in 1987?

   

   MIke Hansen, Jun 16th, 2007 @ 9:25am

   
   

   Yo! Anonymous - It's 2007. FACT: most chip growth is coming from outside of North America and Europe. Your lamentations about a 0.6% revision of the US GDP notwithstanding there are approximately 3 billion people not living in the US who don't have a PC today - if only 10% of those folks become cyber-citizens over the next decade that's enough to keep the wind at the back of Intel and AMD. Maybe not boom times - but a pretty decent commodity for a good number of years to come.

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6.  

   If everyone is still investing...

   

   Eric Williams, Jun 17th, 2007 @ 11:48am

   
   

   Who cares if the company doesn't grow much. The stocks keep getting traded... I don't understand this stupid game you all play.

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