Intel not pretty

INTC reported revs in-line with estimates and at high-end of guidance; INTC also reported higher gross margins and higher operating expenses. Guidance for next quarter was below expectations and below seasonal growth because like we said before INTC produced more than they needed to hence kept gross margins up, now those excess shipments are being worked down by customers. Like I have said before, I will say it again- INTCcontinues to overspend and add capacity and its coming back to bite them and will lead to over capacity in 2006. INTC and customers are building inventory and the trouble with INTC gamble is that this will hurt gross margins hard unless demand comes back strong-unlikely. On the positive side notebooks and wireless continue to work for the company. But unless INTC can get better handle on chipset production its troubles will continue. Overall, I think tech investors are too pessimistic but INTC does not help change that view, on the other side I think it could be worth getting little bullish on tech.