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

To: MileHigh who wrote (25210)	7/19/1999 8:10:00 PM
From: MulhollandDrive	Read Replies (3) \| Respond to of 93625

Then short it. Pay special attention to the bold, courtesy of Greg....also italic, courtesy of bp: Rambus Falls 13% as Intel to Evaluate Alternative Mountain View, California, July 19 (Bloomberg) -- Rambus Inc., a designer of high-speed computer chips, fell 13 percent after Intel Corp., one of its biggest promoters, said it plans to evaluate a competing technology. Rambus fell 14 3/8 to 98 5/8. It shares reached a record 117 1/2 last week on optimism that its technology will become a computer standard. Rambus licenses its high-speed technology to memory and microprocessor makers, who pay royalties based on the amount of products sold. No. 1 chipmaker Intel is promoting Rambus's technology, though today it said for the first time that it's also evaluating an alternative called PC-133 after a number of PC makers asked it to do so. ''We are not backing away from (Rambus) technology in any way and still see it as the future,'' said Michael Sullivan, an Intel spokesman. Sullivan said that if PC-133 proves viable, Intel may use it as another transitional technology to Rambus, though it wouldn't be ready until sometime in the first half of next year. The current standard, PC-100, is still the official transitional technology, he said. PC makers were concerned about the availability and the cost of Rambus-based memory chips so ''we said we would evaluate,'' he said. Intel is expected to release its Rambus-based Camino chipset, which also supports PC-100, in September. Intel needs the chipset to boost the speed of its Pentium microprocessor chips, which run PCs. A chipset acts as the intermediary between the microprocessor and the memory. ''PC-133 is not a meaningful threat to Rambus, which Intel sees as the future,'' said Mark Edelstone, a Morgan Stanley Dean Witter & Co. analyst who has had a ''strong buy'' rating on Rambus since early June and has 12-month price target of 150. Some PC makers, faced with plunging prices for their machines, are balking at using Rambus-based memory chips. The chips can cost three to five times as much as current chips, some analysts say, and may offer little reason for the average PC user to buy Rambus-based PCs. Market research firm Dataquest Inc. estimates the percentage of memory chips sold based on Mountain View, California-based Rambus's technology will rise to 67 percent in 2002 from 3.1 percent this year.