07:56 Barron's comments on Intel's PCI Express and its implications for the PC industry
Barron's highlights Intel as it will be first implement the PCI Express technology, which is the next generation of the "bus" line that carries data inside a personal computer, in a set of processor support chips code-named Grantsdale. The chips will ship with fast new versions of the Pentium 4 with Graphics performance suggested to immediately benefit as even the entry-level PCI Express products will have twice the connection speed of today's graphics systems. According to the article, this development is an exciting prospect for graphics accelerator specialists like ATYT and NVDA. In addition, smaller chip makers such as ICST whose clock chips keep computer parts working in synchrony, should benefit as well. ICST believes PC circuit boards will need more clock chips to work with the PCI Express. Marvell Technology Group (MRVL) and Toronto-listed Tundra Semiconductor will also be shipping PCI Express versions of their chips. Distributors like RHAT now supply versions of Linux for computers containing more than a dozen processors. However, Networking vendors have rolled out a rival technology for connections inside of their boxes called RapidIO. Like PCI Express, the RapidIO technology has plenty of bandwidth and its backed by Intel chip rivals like IBM, MOT and TXN, who aren't eager to help Intel expand beyond computing.
07:51 Smith Barney raises chip industry growth forecast
Smith Barney now estimates that the worldwide chip industry will grow about 20% in 2004, up from their previous est of 14% growth, due to rising unit demand, better prices, and inventory restocking by customers. Firm now anticipates about 7-8% ASP improvement vs 2-3% previously, and raises their unit forecast slightly to 12-13% vs 11-12% previously. Consequently, firm believes there is likely an upward bias to co-specific ests entering earnings season, and they continue to favor stocks with margin leverage potential such as CY, FCS, and INTC. Firm projects 2005 to be the peak absolute sales year for the current cycle, but says the YoY growth peak is expected in 2004, which should be the peak period for chip stocks. |
