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

To: Ali Chen who wrote (74133)	6/3/2001 1:46:04 PM
From: Sun Tzu	Respond to of 93625

Obviously the solution is to add another 32MB of RDRAM. You can see how this feature can lead to an increase demand for RDRAM <g>. On another note, I got this off the cover story of Barron's. Cahill: What's important to know, too, is there is a disconnect between what the telecom service providers are saying and what the equipment analysts are projecting, just as there was last fall. Capex is coming down in 2001 and 2002. Yet if you did an aggregate of all the analysts' 2002 projections for telecom-equipment companies, it would show 15% to 20% revenue growth. That is a big discrepancy. Although it is not directly related to Rambus, it will have an effect on the over all market. I've decided not to make any hasty decisions on RMBS until I hear Intel on Thursday and see the market reaction to some of the earning reports this week. I think the market has discounted the DDR and SDRAM revenue to a fair extent. So going forward Rambus is being valued on the basis of RDRAM progress. The key here is not just the support of Intel for RDRAM, but the time to mass demand. It will not help Rambus much if the RDRAM is the only supported option for P4 over the next 6 months, only to see few sales. Meanwhile, team DDR will be working hard to give a tough competition once the demand picks up. ST