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

To: Daniel Schuh who wrote (56809)	10/6/2000 1:06:04 PM
From: Jdaasoc	Respond to of 93625

Daniel: The spot price of 64Mb DRAM has fallen steadily over the last two months, It is my opinion that the best thing for RDRAM acceptance is the complete lack of profitability of SDRAM. RDRAM will always command a decent premium and profit so as SDRAM becomes less profitable RDRAM manufacturing volumes will go up. This situation almost came to pass in June 99. Everyone was ramping up RDRAM production with the expectation of Camino while SDRAM spot market prices were down below $5 for 64Mb chip. Those RDRAM chips were going to be sold at a profit at the time SDRAM was selling at or below cost. Camino turned out to be bust so RDRAM ramped down. If P4 is a success, RDRAM production will increase dramatically at the expense of DDR. If P4 is a flop, it will be very tuff on RMBS IMO. john