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Strategies & Market Trends : Steve's Channelling Thread -- Ignore unavailable to you. Want to Upgrade?

To: QwikSand who wrote (238)	2/17/2000 11:37:00 AM
From: Steve Lee	Read Replies (1) \| Respond to of 30051

Rambus is the memory technology favoured by Intel. This is due to low pin count. It is more efficient for their chipsets. Rambus has two perceived problems. The first is that it is expensive. It is expensive mainly because manufacturers are able to charge a premium to early adopters. There is also some expense related to it being a fairly new technology - so a ramp is needed to bring costs of production down. tis is a temporary problem. The other problem is that DDR is preferred in servers. This is because large quantities of RDRAM require multiple Rambus channels. My understanding is that there is a performance hit above 2 channels. For servers requiring no more thn 8GB of RAM, it is not a problem - as evidenced by Intel's announcement of the 870 chipset, which supports Willamette, McKinley & Rambus. I have not seen Dvorak's report but it doesn't seem to contradict the reports I have seen that say that Rambus with an Intel chipset is the fastest thing going. Don't forget that Rambus becomes much more important with higher processor speeds so the slight adavntage we see today is a big advantage for future processors. Remember that Willamette is out soon, and that Intel is already shipping 1 GHz coppermines to OEM's. Also note that PlayStation 2 uses Rambus exclusively (due to low cost). There are also at least 30 unnanounced design wins for Rambus outside of the area of PC memory. This was made clear in the latest annual report. At the recent shareholder's meeting, Management stated that PC applications will account for only 35% of the Rambus market. I bought at 144 because RMBS stock seems to have established support in the low 140's. I see the downside as limited to 118, with a good chance of upside to 300 within 3 months. When this stock moves, it moves. You might want to put a stop loss in at 116, or even at 138. However, I was caught yesterday selling just below 140 when I was fooled by a fake break downwards, only to buy stock back later at a higher price.