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I understand why Intel claimed 100-1000x improvement: it's great for the stock. But what happens now if it's not true, will the stock loose all that gain ? or some of that gain will stay ?

And is it legal ?

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I don't think there's anything illegal in ove-promising and severely under-delivering. Also, given the long delay of the 1st gen product release Intel's massive PR and marketing machinery had plenty of time to rewire many if not most people's expectations. Doesn't have the endurance and the orders of magnitude performance advantage promised? Just focus QD1 performance, feed 3-5-10x instead to the media for long enough, over-provision to be able to deliver an OK consumer product and keep everyone's hopes up that revolution will come "soon".

People have short memory (even tech journalists), especially when there is not enough competition.

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