Rambus (NASDAQ:RMBS) rises again on Micron chip shipment
Reuters, Tuesday, June 08, 1999 at 13:05
NEW YORK, June 8 (Reuters) - Shares of Rambus Inc. rose for
the second straight day Tuesday, boosted by news that Micron
Technology Inc. (NYSE:MU) has delivered samples of computer memory
chips using Rambus technology to chip giant Intel Corp.
(NASDAQ:INTC).
Shares of Mountain View, Calif.-based Rambus were up $9 --
more than 11 percent -- to $86.875. The shares rose $5 on
Monday.
Late Monday, Micron said it had shipped samples of its
128-megabit and 144-megabit RDRAM (Rambus DRAM) memory chips to
Intel. The chips are intended to support Intel processors at
speeds of 600 megahertz, 712 MHz, and 800 MHz.
Production volumes of devices using RDRAM demonology will
be available in the second half of 1999, Micron said.
Morgan Stanley Dean Witter analyst Mark Edelstone said on
Tuesday he sees Micron becoming a leading supplier of Rambus
DRAM, joining Toshiba Corp. (TOKYO:6502), Samsung Electronics Co.
(KOREA:64050) and Siemens AG (FSE:SIEG).
This, and continued strong support from Intel, should
benefit Rambus, Edelstone said.
"We believe that Rambus offers significant upside potential
in the near and long term, and Micron's support should be
viewed as a near-term psychological positive for the stock,"
the analyst wrote in a research brief.
On Monday Rambus shares climbed after Edelstone said he was
boosting his 12-month target price on the stock to $150 from
$110 due to large short-interest and his belief that the risk
factor associated with a Rambus product transition has
declined.
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