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: stomper who wrote (65831)	2/12/2001 6:50:28 PM
From: Mihaela	Respond to of 93625

Monday February 12 1:55 PM ET Micron Tech Sees 6-10 Week DRAM Buildup Industrywide SAN FRANCISCO (Reuters) - Micron Technology Inc. (NYSE:MU - news) said on Monday it has no plans to offer incentives or discounts to spur demand for its memory chips, despite reports of a backlog at the chipmaker. The Boise, Idaho-based company said it currently sees six to 10 weeks of inventory at PC manufacturers that make up its customers. ``It doesn't look too bad. It doesn't look great,'' said Kipp Bedard, vice president of corporate affairs at Micron, at an investors' conference here held by Robertson Stephens. Saying that Micron had nearly a quarter's worth of unsold memory chips, Merrill Lynch analyst Joe Osha last week cut its 2001 earnings outlook for Micron to $1.42 per share from $2.86 per share. Despite low market prices for memory chips and wide reports of stockpiling inventory at Micron and other chipmakers, Micron has no plans to offer incentive or discount programs to boost sales, said Bedard. Micron is selling slightly more than 10 percent of its DRAM memory into the spot market for memory chips right now, Berdan said. The company, which competes heavily with memory makers in Japan, Korea and Taiwan, believes that with current low market prices for memory chips, demand will rise again as PC makers install more RAM memory into each PC they ship out. Bedard says that many PC makers are already beginning to ship an average of 128 megabytes of RAM memory standard with desktop PCs. For PC makers ``who have worked through their (excess) inventory, we are seeing that,'' he said. Micron has not canceled any orders for new lithography equipment used for chipmaking, Bedard said. Micron's stock rose 50 cents to $39.75 at mid-afternoon on Nasdaq. dailynews.yahoo.com

To: stomper who wrote (65831)	2/12/2001 6:59:54 PM
From: Jdaasoc	Read Replies (1) \| Respond to of 93625

dave: We should know by mid-March after MU is done dumping it's inventory in time for their earnings CC. I think Intel cuts some of it's $60 rebate in early APR; so I think SDRAM prices will rebound to traditional profitable levels by late APR; early May timeframe. Pick whatever lame excuse you wish for the skyrocketing rebound in SDRAM prices after this surplus is wiped up. Right now RDRAM is $180 for 128 Mb. This is cheaper than EDO and nonEDO fast page DRAM which preceded SDRAM. So if RDRAM and SDRAM achieve the so called 20-30% price differential when SDRAM pricing comes back to economic reality(my guess somewhere between $110-140 per 128 MB for SDRAM; $130-160 for RDRAM), RDRAM will be here to stay. john