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Capitalism is very simple, it's a case of supply and demand.
IDTI,NSM,INTC,AMD are all fine companies, but I see everyone gearing to ramp up voulmes not 5% per quarter but dramatically. Unfortunately as speed upgrades are happening so fast devices lose their value fast. As I mentioned not so long ago Cyrix was unable to sell parts at close to cost and had to eat their inventory big time.
Q3/Q4 is forecast to be 10-15% growth in unit volume for PC market over last year. Prices are laready much lower than last year and yet everyones ramping production dramatically.
Everybody is going to get hurt with inventory IMHO.
INTC is basically entering the DRAM market with its korean investment. I think one of the DRAM guys will pick IDT up: Micron, Samsung, Siemens, Japan Inc.
That way they can leverage the CPU and DRAM sale.
Just my opinion.
Regards,
Kash |
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