Wow, you're remembering me from a couple of years ago!
My initial position in this sector was Level One (then Vitesse), whom I viewed as a less pricey alternative to its primary competitor Broadcom. Since then I've abandoned value-based tech investing and opted for the undeniable best Comm IC company IMO-Broadcom (I actually sold L1 on the day of the Intel announcement and moved the money immediately into Broadcom which fell sharply that day last Feb).
Intel is pathetic IMO. They made the wrong purchase in L1. Broadcom outshines them in every market segment, and have since overthrown L1 in the LAN market. Broadcom is the clearcut leader in supplying LAN PHY (with some intgrated features-MAC layers, IP telephony, etc) and now switches (via acqs of Maverick Networks). L1 is simply struggling primarily because of Broadcom (may sound like hype, but 'tis all true). They consistently beat L1 to market with new products (L3-->L7 switches, GbE over copper, 6/8 port PHY, et al), and have established customer relationships that will pervade (Broadcom sells to multiple units of most every networker).
IMO, Intel is throwing too much money into a market that needs development and centralization. Just buying a network processor company, a LAN specialist, some DSL IC supplier, and a small SONET outfit and throwing tehm together is futile and will prove unsuccessful IMO. |
