Chris Dries, technology analyst at Invesco Funds, is looking for sales late this year of 2.5 million Itanium chips, which would translate to at least 5% of Intel's revenue and significantly boost profits in the fourth quarter. "That's definitely the story on the stock next year," he says.>
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<The server chip market, which generates $6 billion in sales, has been relatively flat, but still represents a pie Intel hasn't been able to touch. On average, Intel gets about $200 for each chip it sells, but the Itanium will sell at prices from $2,000 to $6,000 each, with as many as 10 chips per server. And since it costs Intel little more to manufacture the Itanium than the Celeron that sells for $65, we're talking about a chip that's almost pure profit.>
The numbers in this analysis don't really add up -- or perhaps I missed something?
ptanner, welcome to the thread!
I agree the 2.5 mil for Q4 seems high....Intel may be planning a major push. Your right the server nos don't add up. What surprised me was the price spread for the server chip....2k to 6k. I concluded that one price anticipates serious competition from SUNW and AMD and the other does not.
What are your thoughts on such a large spread?
ted |
