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Technology Stocks : Intel Corporation (INTC)

INTC 38.16

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Nov 7 9:30 AM EST

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To: Scumbria who wrote (67341)	10/26/1998 5:16:00 AM
From: rudedog	Read Replies (1) of 186894

The future of volume server chips is not likely to be a simple extension of desktop systems. The divergence Intel made in the Pentium Pro line, with architectural components specifically designed to enhance multiprocessor design, has been extended in the Xeon and will be further enhanced going forward. Features which make desktop chipsets fly will be increasingly different than server requirements. Look for enhanced cluster, I/O and processor communications capability on the server chips. These features are hard to design, require extensive buy-in from the OEMs, and strain the limits of fabrication technology. That in itself will force vendors with less breadth than Intel to make some hard choices about where they want to go. Intel is likely to increase their strength in this area, especially if they can line up IBM and SUN. HP is already in the boat, and CPQ will continue to invest heavily in Intel server technology independent of what happens with Alpha.

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