Wall Street Is Edgy About Intel

SO WIN95 IS HERE, AND SALES of Pentium chips are booming. Then why is Wall Street antsy about Intel? Its shares tumbled 7% on Aug. 21, after four analysts made tiny adjustments to earnings forecasts. Rational? Not really. But with chip stocks up more than 100% this year, "there are lots of people out there trying to sound prudent," says First Boston's Jack Geraghty. Some investors worry about Intel's growing sales of PC boards, which carry gross margins of roughly 15%, compared with 70% for Pentium. Never fear: The boards are packed with Intel chips and their sales lift total profits.

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