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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?


To: TigerPaw who wrote (175363)11/21/2005 5:41:05 PM
From: The Duke of URLĀ©  Respond to of 176387
 
Dell is going to announce they are going to redouble their efforts to study the use of AMD chips in ALL the lines of Servers, Laptops and Desktops.



To: TigerPaw who wrote (175363)11/21/2005 7:03:19 PM
From: stockman_scott  Respond to of 176387
 
2006 May Bring the Next Technology Wave

By SG Cowen & Co. /
1221 Ave. of the Americas
New York, N.Y. 10020
Tel. (212) 278-4000

FOR TECHNOLOGY INVESTORS, 2006 is shaping up to have much in common with 1991--a period in which a new computer architecture took root while tech sector product cycles grew vastly in number. The relative valuation context, the psychology/funds flow context, the economic context and the architectural context are mightily similar. Only the stock market context is less hospitable.

No matter what is in store for the broad stock market in 2006, we believe the technology sector is at a tipping point--with tech stocks likely to become more obvious relative to other sectors over the next several years.

It is a movie we have all seen before: the mainframe wave, the minicomputer wave, the personal-computer wave, and the client/server wave were all accompanied by unprecedented increases in business productivity and in the proliferation of digital goods. In each wave, fear was much in evidence. Corporations feared the potential competitive consequences of not spending enough on technology. Institutional investors feared the potential career consequences of not owning enough technology stocks.

We have all seen the sequels too: each of these four waves was followed by a frustrating "wave flat" period marked by pervasive overcapacity and a lack of "new killer apps"/productivity drivers. In each wave, flat period, corporations have reined in technology spending while investors became conditioned to expect minimal returns.

From multiple perspectives, the technology outlook in November 2005 appears to have a tremendous amount in common with the outlook in November 1990. 1991 proved to be a watershed year for technology investors -- the beginning of a multiyear period in which a new computing architecture took hold, of tremendous product cycle innovation, and of technology stocks outperforming the broad market.

-- Arnie Berman



To: TigerPaw who wrote (175363)12/9/2005 11:51:51 PM
From: stockman_scott  Respond to of 176387
 
AMD jumps amid signs of gaining share on Intel

today.reuters.com

Fri Dec 9, 2005 6:36 PM ET

By Jim Finkle

NEW YORK - Shares of Advanced Micro Devices Inc. <AMD.N> jumped 5 percent on Friday as investors interpreted a sales forecast from rival Intel Corp. <INTC.O> as a sign that AMD, the No. 2 chip maker, is gaining market share.

Intel shares fell initially but rose 1.5 percent to close at $26.08 on the Nasdaq as analysts looked beyond the current sluggishness to forecast robust sales in the first quarter of 2006, when many expect Apple Computer Inc. <AAPL.O> to begin shipping computers using Intel chips.

"Particularly when considering the incremental sales to Apple, Intel's below seasonal performance (in the fourth quarter) should contribute to above seasonal performance (in the first quarter) for revenues and margins," Citigroup analyst Glen Yeung said.

AMD has pressured Intel in recent months, especially with its Opteron chip for server computers that run networks, and analysts said Intel's mid-quarter revenue forecast on Thursday provided more evidence of that.

"AMD is picking up share versus Intel," said Paul Leming, an analyst with Soleil Securities. "Intel recognizes that's going on. They don't deny it."

Many analysts had expected Intel to narrow its sales estimate for its current quarter toward the top end of its earlier outlook. Instead, Intel stuck to the midpoint of its previous range, saying revenue would be $10.4 billion to $10.6 billion.

The midpoint of Intel's revised range was only slightly below the Wall Street average forecast of $10.6 billion.

Analysts said that investors had hoped that Intel would follow other chip makers, such as Texas Instruments Inc. and Xilinx Inc., which strengthened forecasts on Wednesday.

"The PC market is strong and Intel is putting up weak numbers," said Kevin Rottinghaus, an analyst with FTN Midwest.

FTN Midwest market research has turned up evidence that AMD continues to take market share from Intel, based on conversations with electronics suppliers in Asia. "The implication is that AMD's market share gain is accelerating," Rottinghaus said.

Cody Acree, an analyst with Stifel Nicolaus, said that Intel's problem stems from its inability to produce enough computer chips to meet demand.

"They are capacity constrained so that there's not much ability to ship more than they've already shipped," Acree said, adding that the company's strong third quarter probably took some business from the fourth quarter.

Shares in Dell Inc. <DELL.O>, the world's No. 1 personal computer maker, rose 52 cents to $31.17. Apple shares rose 25 cents to $73.33. (Additional reporting by Scott Hillis in San Francisco)



To: TigerPaw who wrote (175363)12/13/2005 3:56:38 PM
From: stockman_scott  Read Replies (1) | Respond to of 176387
 
Power-Hungry Computers Put Data Centers in Bind
____________________________________________________________

Newer Hardware Guzzles Electricity and Spews Heat, Requiring Costly Alterations
By DON CLARK
Staff Reporter of THE WALL STREET JOURNAL
November 14, 2005; Page A1

The University at Buffalo installed a $2.3 million Dell Inc. supercomputer last summer, hoping to bolster its image as a research institution. Instead, the big machine came to symbolize an increasingly vexing problem for data centers world-wide.

Once the machine was delivered, university officials discovered they had only enough electrical power to switch on two-thirds of the system. They have temporarily responded by throttling back use of an older supercomputer, but a $20,000 electrical-system upgrade will be needed to run both systems at full capacity.

"The calculations that were done fell slightly short," says Bruce Holm, a senior vice provost at the school, which is part of the State University of New York. "The bottom line was that they missed."

More such misses are likely. That's because, in its long-running race to boost performance, the computer industry has hit a major hurdle: The newest hardware -- particularly the servers that run most business programs and Web sites -- draws too much electricity and generates too much heat.

The power-hungry machines, along with rising energy prices, are generating enormous utility bills and forcing changes on Silicon Valley technology suppliers that are akin to Detroit's struggle to improve gas mileage. (See related article.) Though more-energy-efficient computers are on the way, it could be years before companies replace the systems they have already purchased.

In the meantime, bringing in more electricity and cooling is expensive and difficult in some data-center buildings. Organizations face unpleasant choices that include building new facilities, putting off server purchases or leaving costly space in computer rooms unoccupied to avoid overwhelming their air-conditioning systems.

Facilities planners at the University at Buffalo, for example, originally erred because they thought an older supercomputer would no longer be needed by the time their new machine arrived, Mr. Holm says. The need for both systems caused the university to consider spending as much as $150,000 to upgrade the current data center's air conditioning, just as the university was on the verge of moving the systems to a more modern computer room. "It's that kind of juggling act," Mr. Holm says.

If planners miscalculate, servers overheat, damaging circuitry or causing shutdowns that disrupt operations. The Uptime Institute, an organization that represents data-center managers, predicts that power-related problems this year will cause four of the 20 major failures typically experienced by members annually, up from two of 20 last year. "We are headed into a territory where there is no precedent," says Kenneth Brill, the group's executive director.

For years, no one worried much about power consumption. Chip makers relentlessly shrank transistors, creating chips that operate at a higher frequency and consequently draw more electricity. Besides those speed increases, measured in gigahertz, power consumption increased because the tiniest new circuitry tended to leak current when switched off, like a faucet that won't turn off all the way.

No one pushed miniaturization harder than Intel Corp., the world's biggest chip maker. During the 1990s, faster chips helped reduce servers from refrigerator-size to models smaller than a pizza box, which companies can stack by the hundreds in racks in large data centers.

Along the way, power consumption for servers surged, approaching 3,800 watts per square foot this year for the most compact systems from 250 watts per square foot in 1992, according to the American Society of Heating Refrigerating and Air-Conditioning Engineers. That's as much as 38 standard light bulbs, or more than half the power required by many homes.

Now, hardware makers have changed course. Intel, under pressure from rival Advanced Micro Devices Inc., is striving to improve performance by using multiple electronic brains on its chips -- each of which operate at a lower gigahertz speed to save energy. Paul Otellini, Intel's chief executive, predicted in August that new chips his company is developing could save $1 billion in energy costs each year for every 100 million units sold.

The new pressures are transforming chip marketing and development plans. AMD, for example, is quick to note that its Opteron chip draws as much as 95 watts, compared with 150 watts for Intel's latest Xeon chips. Sun Microsystems Inc. today is announcing a new chip, code-named Niagara, that has eight processors but draws only about 70 watts.

New, more energy-efficient machines can't come fast enough for Denis Weber, executive director for information technology at Verizon Wireless. The company, a joint venture of Verizon Communications Inc. and Vodafone PLC, was forced to upgrade a data center in Ohio to bring in two megawatts of power, a nearly sevenfold increase from 1998, he says. The monthly power bill for the center rose to $40,000 over the same period from about $10,000.

Rackspace Ltd., a San Antonio service that manages servers for clients, has seen its power needs swell to eight megawatts from three megawatts in the past three years -- sending its monthly utility bill up roughly fivefold to nearly $300,000, says Paul Froutan, vice president of product engineering.

Those who run their own data centers have to do more than write big checks. To provide adequate power for its supercomputer center in Oakland, Calif., the Department of Energy's National Energy Research Scientific Computing Center had to dig up a parking lot and knock a hole in a basement wall to bring in locomotive-sized power supplies and air-conditioning units. Adding more capacity would require digging up the parking lot and knocking the wall down again.

One contributor to power problems is the fact that the people who buy computers often aren't the people who have to manage them. Some 59% of data-center managers say their biggest worry is the purchase of computing equipment without adequate concern for power and cooling, according to a survey completed early this year by market researcher InterUnity Group for AFCOM, a data-center managers association.

To keep servers from overheating, data centers typically have air-conditioning units that push cool air up through holes in floor tiles. That air is sucked in through vents in the front of servers, pushed by fans through the circuitry and out the back of the systems. Ceiling intakes remove the hot air and recirculate it.

Many things can go wrong. Servers at the top of racks get hot faster, and break down more often. Air flow in cooling tiles may get obstructed. If the power goes out, backup batteries and generators aren't always enough to keep the air conditioning running. "If you have any type of cooling failure, you have no time to react," says Gary Light, chief technology officer of Concord Hospital, a Concord, N.H., facility that recently installed advanced cooling gear from American Power Conversion Corp.

Consider the experience of Pomona Valley Medical Center. The hospital east of Los Angeles quickly grew to 70 servers from 30, says Kent Hoyos, its chief information officer. The heat they generated overwhelmed the computer room's air-conditioning system and a backup unit that was pressed into service.

With temperatures in the room averaging 92 degrees, machines began behaving erratically, Mr. Hoyos says. In late 2003, an air-conditioning unit broke down, sending the temperature over 100 degrees. The event caused a temporary shutdown of systems serving the hospital's laboratory, $40,000 in damage to servers and hard drives, and prompted a $500,000 retrofitting of the cooling system using equipment from Emerson Electric Co.'s Liebert unit, Mr. Hoyos says.

Nowhere is cooling a hotter topic than at Lawrence Livermore National Laboratory, where two of the most powerful computers in the world are used to simulate nuclear reactions. One system that uses conventional International Business Machines chips, dubbed ASCI Purple, draws more than seven megawatts of power. The first time it was switched on, the local utility called to ask what happened, lab officials say.

The second machine, dubbed BlueGene/L, is more than twice as fast for some applications. But it was designed with special low-powered IBM chips, so the system requires only 1.5 megawatts. Instead of drawing air from the room through side intakes, cold air is pushed up directly through the machine from the floor.

Even so, the lab's electrical bill for computers has swelled to more than $10 million a year from about $2 million several years ago, says Mike McCoy, its deputy associate director for computation. Without the radical design of the new system, the bill would be "way over $20 million, and that is completely hopeless," he says.