Joe Osha Continue Quotations

We suspect that Intel will, at some point, respond with aggressive pricing rather than allow AMD to continue to build market presence.

We continue to believe that we are in the second year of a 5- to 7-year investment cycle in Internet infrastructure.

We continue to believe Intel will apply competitive pressure to AMD in the desktop and mobile markets in an effort to blunt further shares gains, even if the result is negative for Intel's own profitability in 2006.

Despite our conservative remarks on margin compression and pricing intensity, we continue to believe Intel will meet our revenue forecast and reiterate our intermediate-term neutral and long-term accumulate rating.

Although the company is executing in terms of cost control, we think margin contractions at the gross margin level will continue through the second quarter as well, which we had not factored in.