A much larger issue is the long-term trend. You can see why Intel's stock had a difficult finish to 1997, and a tough start to 1998, as Intel attacked new markets. Now look at the big picture. Intel is fighting an uphill battle to grow operating income while at the same time leading aggressive price cuts and fighting slowing sales. Investment income is not sustainable.
Acquisitions bring new risks.
Intel has spent billions of dollars on acquisitions and for stakes in businesses the past three years, with a focus on networking and server operations. These investments increase the risk for lower returns on investment for shareholders, should any of Intel's investments prove subpar. They also make the company more complex to follow. It isn't devoid of risk, though, and the risks are increasing rather than decreasing as the markets in which Intel operates mature and evolve. Intel's need to continually invest in its infrastructure increases the risks, too, as do Intel's attempts to grow outside its core semiconductor business.