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Technology Stocks : S3 (Multimedia semi's place 2be)
SIII 0.00010000.0%May 12 5:00 PM EST

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To: Anatole Kulick who wrote (8154)3/9/1997 4:02:00 PM
From: Ski   of 9477
 
Comrade Anatole, I stick by my prediction that part of Intel is trying to get into the S3-ATI space in mid 98. (Other parts of Intel don't want to see this happen as it is a distraction from the core business.) It is a question of what to do with all that fab capacity that Intel has. As all those fabs are paid for, the marginal cost of cranking out a graphics chip is peanuts. So, yes, I still think they are coming.

Now, will Intel like what they find when they get there? That's the question. Both S3 an ATI have roadmaps that should make it a rather inhospitable environment for Intel. Maybe Intel will pull the plug on the whole deal and we'll just never know.

Good Luck,

Ski
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