I don't think this has already been posted.
quote.bloomberg.com
Bilow, Analysts doesn't want to kiss Rambus goodbye...
Excerpts :
``The concern is way overdone and not a disaster that people are trying to make it out to be,' said Dickson, who rates Rambus ``strong buy.'
"Dickson said he thinks hundreds of thousands of computers that are set to debut next week and in the following weeks may have the technical problem, but he expects them to ship anyway."
"It will be one to two years before Rambus is sold in any meaningful volume, said Drew Peck, an SG Cowen & Co. analyst who rates Rambus ``buy.' ``Camino and any problems with it now is a non-issue to Rambus, since the volumes will be so small for so long,' Peck said."
"Market-research firm Dataquest Inc. estimates the percentage of DRAMs sold based on Rambus's technology will rise to 67 percent in 2002 from 3.1 percent this year."
67% in 2002 is something I can live with....
WHOLE ARTICLE :
Rambus Falls on Concern Over Chip Adoption Delay (Update1)
(Adds analyst comments. Updates with closing share price.)
Mountain View, California, Sept. 24 (Bloomberg) -- Rambus Inc. shares plunged 19 percent on concern that personal computer makers may delay adopting the company's high-speed technology.
The shares fell 16 3/8 to 71 1/8. They traded as high as 117 1/2 on July 16 on speculation that Rambus's technology would become the standard for dynamic random-access memory chips, or DRAM, the most common memory chip in PCs.
Rambus's technology improves the performance of memory chips and is backed by Intel Corp., the No. 1 computer-chip maker. PC makers have been balking at spending extra for Rambus chips as prices for their machines fall and a report of a problem with an Intel product that uses the chips surfaced. ``PC pricing pressure is driving growth much faster in the low end than high end, which is reducing Rambus's market opportunity,' wrote analyst Dan Niles, at BancBoston Robertson Stephens, who cut his rating on Rambus to ``long-term attractive' from ``buy.'
Adding to concern is a reported problem between Intel and Rambus chips.
Intel's chipsets act as an intermediary between a PC's microprocessor and its memory. One model based on Rambus technology is reported to have a technical problem that could delay shipment of PCs with Rambus memory chips, said Seth Dickson, a Warburg Dillon Read LLC analyst. ``The concern is way overdone and not a disaster that people are trying to make it out to be,' said Dickson, who rates Rambus ``strong buy.'
Rambus and Intel declined to comment. The problem with Intel's Camino chipset was reported on CNET Inc.'s News.com Web site.
Niles mentioned Camino in his report and said some memory- chip makers may be having trouble getting enough working Rambus chips from the silicon wafers, which can drive up chip prices.
Price of Rambus
Rambus licenses its high-speed technology to memory and microprocessor makers, who pay royalties for it. The chips can cost three to five times as much as current chips, some analysts said, and offer little reason for the average PC user to buy Rambus-based PCs.
Dickson said he thinks hundreds of thousands of computers that are set to debut next week and in the following weeks may have the technical problem, but he expects them to ship anyway.
It will be one to two years before Rambus is sold in any meaningful volume, said Drew Peck, an SG Cowen & Co. analyst who rates Rambus ``buy.' ``Camino and any problems with it now is a non-issue to Rambus, since the volumes will be so small for so long,' Peck said.
Market-research firm Dataquest Inc. estimates the percentage of DRAMs sold based on Rambus's technology will rise to 67 percent in 2002 from 3.1 percent this year. |
