Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Jim McMannis who wrote (61378)	11/17/2000 3:10:10 AM
From: Don Green	Respond to of 93625

Intel's Swift Pentium 4 Chip Is Set To Launch, in Bid to Outpace AMD November 17, 2000 By MOLLY WILLIAMS Staff Reporter of THE WALL STREET JOURNAL SANTA CLARA, Calif. -- Intel Corp. will introduce its Pentium 4 chip on Monday as it looks to reclaim the speed crown from rival Advanced Micro Devices Inc. in the market for processors that run personal computers. While the Pentium 4 is Intel's biggest processor change in almost five years, it is, at least for now, mostly a battle for bragging rights. The chip itself isn't expected to be a big seller this holiday season. Intel has said the chip's two versions will run at 1.4 gigahertz and 1.5 gigahertz, which is faster than the 1.2 gigahertz Athlon chip from AMD, currently the fastest chip on the market. Intel said it expects the Pentium 4 to reach speeds of 2 gigahertz by the third quarter of next year. The Pentium 4, operating at 1.4 gigahertz, will cost about $625, and the 1.5 gigahertz version will cost about $795, according to personal-computer makers, though analysts expect prices to tumble before December. AMD's 1.2 gigahertz Athlon costs $612. Intel expects several PC makers, including International Business Machines Corp., Compaq Computer Corp. and Dell Computer Corp., to start selling systems with the Pentium 4 on Monday. Ahead of the official announcement, at 4 p.m. in Nasdaq Stock Market trading Thursday, Intel shares were down 3.6%, or $1.50, to $40. At 4 p.m. in New York Stock Exchange composite trading, AMD shares were down 6.3%, or $1.38, to $20.56. Intel's Pentium 4 was delayed from late October because of issues with the set of supporting chips, known as the chipset, according to PC makers. The product faces more hurdles ahead because it initially will run only with the more expensive Rambus Inc. memory technology. A Pentium 4 chipset that uses the less expensive and more abundant memory known as SDRAM won't be available until the second half of 2001. Analysts don't expect the new chips to be a big seller during the holiday season, as Intel won't be manufacturing many of them. The Pentium III will continue to ship in most PCs that cost less than $2,000, with the Pentium 4 coming in the more expensive machines. Analysts expect Intel to ship about 500,000 Pentium 4 chips this year. That compares with some 58.6 million desktop Pentium IIIs to be shipped this year by Intel, according to Mercury Research. For its part, AMD is working on more powerful Athlon products, but those won't be out until next year. With its faster products and ability to increase supply, AMD has been gaining share against its bigger rival for several quarters, according to Mercury Research. And the smaller chip maker will still be able to sell into the gap between Intel's fastest Pentium III, at 1 gigahertz, and its 1.4 gigahertz Pentium 4, analysts said. The Pentium 4 is very big, analysts said, which makes it more expensive to produce. Analysts said that will push unit costs higher than they originally had expected, which will put pressure on gross margin next year. Intel has acknowledged that average costs for processors next year are going to be higher than it initially forecast, though still below this year's levels. Analysts expect steep price cuts on the Pentium 4 as early as the end of this month. Analyst Mark Edelstone with Morgan Stanley Dean Witter said he expects Intel to slash Pentium 4 chip prices to $495 for the 1.4 gigahertz and $625 for the 1.5 gigahertz when it next cuts prices on Nov. 29. That will heat things up between AMD and Intel. "It's going to be a pretty big battle next year," Mr. Edelstone said.