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Technology Stocks : Intel Corporation (INTC)
INTC 34.32-1.2%3:59 PM EST

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To: bananawind who wrote (57736)6/10/1998 2:07:00 PM
From: Tony Viola  Read Replies (1) of 186894
 
Jim, Re: "Purported death of high end processor
demand may be a wee bit exagerated."

Thanks for the article. However, I don't think any prognosticators on sales of high end processors for the server market, which is what your article is all about, were seeing any death or even slowdown for the servers (NT) or the CPU chips that go in them. Rather, it's been explosive growth, both predicted and actual. All the hype about who needs high end chips has been about the home PC, and maybe some about business PC's. Projections I have seen for growth of NT based servers, on a yearly basis, are about what Japan is seeing, probably closer to the '97-'98 growth % than to the '96 to '97 %. This is happening at the expense of UNIX servers, which are growing not at all.

Re: "Both companies also revealed plans to develop a
new type of PC server with a Pentium II Xeon, Intel's new processor that performs
at 400MHz to 450MHz. The number of Pentium II Xeons to be mounted on NEC's
server is reportedly 16, and that on Fujitsu's server is 16 to 32.

At the risk of being repetitious (wouldn't be the first time?), the only CPU chips that can be used in any of these servers are Intel Pentium Pro and Intel Xeon. Woops, monopoly. Note that PPro and Xeon are not plug compatible and require different motherboards.

Tony
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