Tuesday, July 14, 2009

Intel Earnings

Much better than expected - revenues and margins. Very positive for tech.


Intel is not the tail that wags the dog. It's the dog in tech hardware with the biggest tail (and longest lead times) so it's a big deal when it's better or worse than real expectations.

It is also, however, very good at being cyclical. I'm still willing to bet that Intel's good results point definitively to a cyclical recovery in tech hardware, and are not necessarily a harbinger of global demand recovery. Might be happening but I wouldn't look to Intel for proof.

In general, you can buy Intel when global supply is recovering. It doesn't have as much to do with demand. Just a positive indicator and not even always that.

Drives, memory and flat panels should rip tomorrow.

I write bad today, I know.

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