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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (106189)	7/26/2000 9:12:01 AM
From: Road Walker	Respond to of 186894

Brian, I'm not sure if this has been posted here, borrowed from the Rambus thread: "11:31am EDT 25-Jul-00 UBS Warburg INTEL PREPARES TO DEFEND ITS POSITION WITH AGGRESSIVE P4 RAMP SUMMARY: Intel's position in the microprocessor market has come under increasing pressure as AMD's Athlon processor has been able to challenge Intel at the mid- and higher-performance segments of the market. We believe that Intel is accelerating its performance treadmill with the aim of out distancing AMD and attempting to relegate the AMD's processors to the lower-end segments of the market, a strategy that has worked successfully in the past. HIGHLIGHTS: * Key to this strategy is the introduction of the Pentium 4 processor. We expect Intel to introduce the Pentium 4 in September starting at speed of 1.3 and 1.4 GHz with plans of aggressively building on this performance level in 2001. * Rambus memory is key to delivering the performance promised by the Pentium 4 processor. However, with the current state of under capacity in the semiconductor industry, SDRAM prices are trending upward and PC manufacturers are not finding ample motivation to drive the volume ramp of RDRAM in 2H00. * As Intel prepares for its semi-annual developers forum, we believe that they are developing a contingency plan in case they are required to drive Pentium 4 processors more rapidly into the mainstream desktop or an ample supply of RDRAMs does not materialize to support the Pentium 4 ramp in 2001. We believe that Intel has developed a plan and is beginning to notify OEM's that it intends to introduce a lower performance Pentium 4 chipset that supports PC133Mhz SDRAM in 2H01 targeted at mid-range systems. * Regarding Intel (INTC-$138-Buy): We believe that Intel is taking the appropriate steps to defend its position in the marketplace without engaging in an all-out price war by pursuing a strategy that has worked well in the past. Accordingly we maintain our Buy rating with a 12 month target price of $190. * Regarding Rambus (RMBS-$86.19-Strong Buy): We maintain our Strong Buy rating and 12-month $165 target price. We believe that the company's high performance RDRAM memory will become a dominant architecture as higher performance Pentium 4 systems create demand and volume economics reduce cost which should allow RDRAM to penetrate into the mainstream desktop, more likely to occur in 2H01/1H02. Near-term, based on the company's strong IP portfolio and recent successful non-RDRAM licensing agreements with Toshiba and Hitachi, and an expectation that more will follow, we are not motivated to change our estimates or investment view."