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The article reports that Intel Corp., the world's largest computer chip maker, said slower sales of desktop computers and weaker prices led it to miss its revenue target for the fourth quarter. The company's stock declined more than 9 percent. The author discusses how Yahoo! Inc. also missed targets, causing technology stocks to decline across the board.

Discusses the implications of Apple Computer's decision to shift the Macintosh microprocessor business to longtime rival Intel, after more than a decade with IBM. Comments of Appel's chief, Steven P. Jobs and Paul S. Otellini, head of Intel; Outlook for the changeover; Challenges, including persuading Apple customers to continue to buy Mac computers based on IBM's PowerPC chip while waiting for the Intel versions to arrive; How the Intel-Apple partnership could affect the balance in the industry; Views of skeptics.

Focuses on a notion introduced by Gordon E. Moore forty years ago in "Electronics" magazine -- and later referred to as Moore's Law -- that several transistors could be placed on one computer chip. Similarities in Moore's prediction in 1963 and that of Douglas C. Engelbart in 1960, yet Moore is credited with the idea; Impact of these two men on the culture of Silicon Valley and computing industry; Recount of the early work performed by both Moore and Engelbart, noting Moore's founding of Intel Corp. and Engelbart's involvement with Stanford Research Institute, now SRI International; Engelbart's early work with integrated circuits.

Discusses how Intel Corporation is shifting its computer chip marketing strategy from the traditional speed message to highlighting an array of consumer-oriented features. Announcement of the company's three-chip suite that blends performance, wireless capability and multimedia audio and video features; Comments from Paul Otellini, the chief operating officer, regarding the plan to create new chips; Debate on how quickly the new design will be adopted by computer makers and if it will effect Intel.

Reports on the release of new generation Pentium 4 microprocessor, code-named Prescott, developed by Santa Clara, California-based Intel Corporation. Plan of the company to add 64-bit capability to its personal computer chips in a future version; Anticipation of the company towards a new generation of home entertainment computer systems; Expectation of the company on the sales of the latest chip.