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Technology Stocks : 3DFX
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To: Chip Anderson who wrote (9227)11/24/1998 1:27:00 PM
From: Michael G. Potter  Read Replies (2) of 16960
 
I'm pretty sure that 3Dfx will deliver a very high performance chip next year ("Rampage"). What I'm not so sure of is how much of a lead they'll have on their competition. I'm also worried about sales in the begining of the year.

TNT2 at .25 will be out sometime Q1/Q2. They use the same fab that 3Dfx does, so they'll get access to the same process. They'll have time to tweak their design to improve yeilds or to remove hotspots. With the higher clock, their 32-bit performance will increase. That means that the V3 (@ $35) may not be the blowout OEM chip that 3Dfx is planning on.

Of course, ATI will not be sleeping, but their newest chip (already at .25) is just at V2 / TNT levels of performance (based on some early web reports I've seen).

The saving grace is that 3Dfx had little OEM sales last year in Q1 so the Banshee sales will help.

Michael
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