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Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: REH who wrote (22444)	6/13/1999 11:51:00 AM
From: unclewest	Read Replies (1) \| Respond to of 93625

reh, here is the article. i just found it on line. Mark Edelstone Managing Director, Morgan Stanley Dean Witter CATEGORY: Semiconductors STOCK PICKS: Rambus (RMBS), Xilinx (XLNX), Texas Instruments (TXN) WHY: Rambus has waited nearly a decade for its ship to come in. The company, now trading at 88, has devised a dramatically faster way to connect computer processors to memory chips. Now, it's about to hit pay dirt, Edelstone says. Rambus' technology has won the endorsement of mighty Intel Corp., which has the clout to drive industry standards. As a result, he says, within the next three to five years, ''Rambus will become the dominant memory architecture in PCs'' and other information devices. That should make it a big winner in the stock market. Edelstone's second pick, Xilinx, is a leader in the esoteric and fast-growing business of programmable logic devices. These specialized chips allow creators of electronic products to customize them much more easily and rapidly than in the past. Xilinx, now trading at 46, ''will see a real payoff during the next two years,'' Edelstone says. In the sizzling programmable-logic category, ''it has the most fundamental momentum of any company.'' As growth in the electronics sector shifts to non-PC devices such as Web appliances and handheld computers, no company is better positioned to benefit than Texas Instruments, Edelstone says. TI, which is trading at 117, makes so-called digital signal processors, specialized chips that crunch through vast streams of data. DSPs are found in phones, hard drives, modems, and automobiles--and will become critical ''for virtually all communications and consumer products,'' Edelstone says. With its 50% share of the DSP market, ''Texas Instruments has to be a core holding in any portfolio,'' he says. Copyright 1999 The McGraw-Hill Companies, Inc. All rights reserved. Any use is subject to (1) terms and conditions of this service and (2) rules stated under ''Read This First'' in the ''About Business Week'' area.