The semiconductor industry is very, very cyclical; and when things are good - which they are now - they're always better than were expected. Of course, when things turn down, they always hit harder than anybody would have guessed. And right now what's happening on Wall Street is a lot of people are trying to kind of guess the top: are we there yet? There's really no way to tell.
What we're seeing is an extension of PCs. We're probably going to see those companies with PC exposure get penalized by association with the PC market. That's not necessarily fair across the board, but the bigger the exposure to PCs, I would say the bigger the uncertainty that there won't be a problem.
Business conditions especially in the PC supplier area were picking up in August.
We had all these negative pre-announcements and the stocks aren't going down, and the sector is going up. The market is calling a bottom.
It's a question of growth. In some ways we think that they're a victim of their own success. I mean, when you have already won the war, what do you do next?
Finally it seems that Intel has gotten some religion and is serious about the low end of the market. It's an old school method of Intel of hitting you hard with the hammer.
At first glance, I would say they came in slightly above expectations.
I walk about five steps into the next room.
We think Intel's antitrust issue is something to be concerned about, but it's only a No. 3 or No. 4 issue.
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