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Technology Stocks : Silicon Graphics, Inc. (SGI)

SGI 94.27

+2.2%

Dec 11 3:59 PM EST

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To: Findit who wrote (9528)	11/6/2001 2:17:14 PM
From: brushwud	Read Replies (1) of 14451

From the rumor article >>There is another source of optimism: SGI is very interested in the G5 for its future workstations. It wants to abandon development of its MIPS line of microprocessors in the near future citing that it can no longer recoup its development costs, and produce a competitively priced UNIX workstation at the same time.<< Yes, that sure sounds like a rumor to me. First of all, SGI no longer has a MIPS line of microprocessors since they spun off MIPS over a year ago. I'm sure there are engineers at SGI who have in interest in all current microprocessors and so it's very possible that MOT has gotten inquiries from SGI, but I'd really doubt that will lead to any business. SGI is already using Intel's Itanium, but they'll probably get checkmated in that market by Dell & HP. If they were smart, they'd use AMD's upcoming 64-bit Hammer series, which will be a lot more economical & mainstream than the Itanium. Even if SGI doesn't, Sun will eventually be forced to go with AMD. MOT's management is actually talking about pulling the plug on its semiconductor division, the former head of which is now president of AMD.

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