Earnings were extremely robust. The bottom line is that people who doubted that the earnings acceleration would continue have been proven wrong.
This is not new news but it carries a lot of weight coming from Chambers. The message is that things are not getting worse.
Surely the dollar makes pricing more competitive for U.S. companies. But it's more a noise factor than anything else on a short-term basis.
The clear message from Intel to Wall Street is 'Let's not get carried away.'
The profit margins in the analog area hold up much better than some chip companies that are more cyclical.
Motorola had to spread its resources over too many areas. By moving away from the semiconductor business, it can spend more on research and development and also make its earnings stream more smooth.
I don't plan on making money in tech through M&A. Investors should look for tech stocks with good valuations and good organic growth.
Overall I'd categorize the number as generally in line. The guidance was slightly off, but it's nothing to get too alarmed or too excited about.
Applied Materials is the bellwether. The company's results give a good indication of what we can expect for the rest of the industry.