The key issues to watch from here would be the negotiations and litigations with other DRAM suppliers,

NAND flash currently represents one of the weakest product segments in the overall semiconductor industry.

Demand for PCs is weak and microprocessor prices are becoming more aggressive, … To stimulate PC demand and improve Intel’s long-term competitive position, we believe the company’s Pentium 4 price cuts will become more aggressive.

Coupled with weak PC demand, we believe Intel faces significant product transition risk to its next generation Pentium III microprocessor without a good cost structure in 2001,

This is likely to lead to a lower-than-expected average selling price for Intel’s overall MPU (microprocessor) portfolio.

Although it’s not easy for anyone, LSI has clearly underperformed. It comes down to a lack of focus and execution.

We believe PC demand remained sluggish in October and Intel is facing a more challenging competitive environment.

Revenue growth is decelerating rapidly, and a trough isn’t expected until the third quarter of 2001, … Based on semiconductor industry data for November, we also lowered our projection of the global industry’s growth rate...

We expect seasonally normal PC demand and a richer product mix to drive a positive first quarter earnings surprise. PC demand should accelerate in the second half of 2000, (driven by) a strong economy, Windows...

We maintain our ‘equal-weight’ rating on Intel, but believe that a better buying opportunity will likely occur after consensus earnings estimates are reduced.

There is nothing like this drop since 1985. But the market should turn up by the first quarter of 2002, when the year-over-year comparisons should be easier for companies to beat.

The quarter was quite solid and pretty much in line with our expectations. We think this is a positive for the whole group and we are quite positive on the sector for 2000.

Intel’s price curve is significantly more aggressive than anything we’ve seen before,

After the bubble burst, LSI was hurt as much as anyone else. But there were a handful of companies that were just as broadly positioned, and with great technology and execution, they were able to...