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

To: Barry Grossman who wrote (37578)	2/27/2000 2:48:00 PM
From: Barry Grossman	Respond to of 93625

Dow Jones Newswires -- February 24, 2000 Rambus Says Intel 'Message' On Rambus DRAM Was Clear By MARK BOSLET PALO ALTO, Calif., -- Rambus Inc. (RMBS) argued on a conference call Thursday that Intel Corp. (INTC) gave a "clear message" last week by reiterating its support for Rambus computer memory technology. At its developers forum in Palm Springs, Intel repeated that it backs the use of Rambus memory in personal computers, workstations and in at least some servers, Rambus executives said on the after-market call. In offering their interpretation of Intel's presentation last week, the Rambus executives sought to show that their next-generation computer memory technology is destined to capture a large share of the market. Controversy over the technology's potential has produced divergent views on the company's future and led to volatility in its stock. Since the start of the developers forum, for instance, sentiment has turned more optimistic and Rambus shares have been on a tear, climbing about 130%. On the call, Rambus said it expects 7 million Rambus DRAM memory chips will be shipped for use in PCs during the first quarter and an additional 3 million chips will go inside Sony's PlayStation II, scheduled to be launched in March. The transition from SDRAM memory to Rambus DRAM in computers is underway, the company said. At its forum, Intel Vice President Pat Gelsinger said the launch of Rambus DRAM has gone more slowly than expected, in part because of delays in an accompanying Intel chipset. But the high-speed memory will be a big advantage in computers running Intel's planned chip code-named Willamette, Gelsinger said. Intel also doesn't see the alternative memory technology called DDR, for double data rate, DRAM as appropriate for the PC market, though it will be used in servers, he said. Several analysts on Thursday reiterated some caution on the adoption of Rambus memory chips, which cost about 50% more to make. The success or failure of Rambus DRAM will depend on its acceptance by computer makers, and computer makers are "price sensitive," said Arnab Chanda, an analyst at BancBoston Robertson Stephens. Further, Intel's comments on Rambus weren't much different than what the company has been saying all along, Chanda added. They did, however, trigger a sharp rise in Rambus stock as short sellers, expecting unflattering Rambus news from the forum, rushed to cover their positions, which assumed Rambus shares would fall. The short squeeze continued today with Rambus shares up another 32, or 18%, to 209 on Nasdaq volume of 4.2 million. Average daily volume is 1.7 million. Rambus argues that the cost of Rambus DRAMs will go down as more memory makers get production lines in operation. Five memory makers are approved to make Rambus DRAMs, with two more expected by the end of 2000, Rambus officials said.