Dan Niles Intel Quotations

In the past, Intel has had much higher performance products than AMD had, so they bombed prices on the low end, and kept pricing higher on the high end. This time, AMD's got as speedy processors as Intel does at the high end. There's nothing Intel can do. They can't bomb prices without hurting themselves.

It's easy for No. 2 to gain share when No. 1 can't deliver enough products. It will get more interesting in 2006 as Intel brings new capacity on line.

Over the past two years, AMD has increased its market share against Intel from 13 percent to 21 percent. For those who thought the price war was aggressive, you haven't seen anything yet.

We believe that Intel is seeing the most front-end loaded third quarter in many years and is booked out for the quarter.

Intel sees no signs of a pickup and would not call this quarter the bottom for revenues. We do not think the bottom will be reached until the summer, at the earliest, and remain cautious on the stock.