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Technology Stocks : LSI Corporation -- Ignore unavailable to you. Want to Upgrade?

To: Robert T. Harvey Jr. who wrote (8081)	12/2/1997 2:34:00 PM
From: shane forbes	Respond to of 25814

Robert thanks. Last year for XMas LSI ramped up the run-rate for the PlayStation chip to 1 million chips (it used to be 0.5 million) / month. This April I think, the bump up was 1.5 million. Recently it was moved up to 2 million. Probably in anticipation of XMas (booming economy = more money = happy people = happy children = fancy toys = biz.yahoo.com. To put this in perspective Sony is selling around 24 million chips a year. I think INTC is around 80 million chips / year (may be 1995 or 1996 figure - may also be balderdash - too lazy to check). So we are almost matching unit volumes... well not quite but 2 years ago there were a paltry 1-2 million PlayStations installed base. Not too shabby. Based on past history it would seem that another 0.5 million upgrade to 2.5 million/month or 30 million chips / year should come early next year. That's a 25% increase. Sony currently is responsible for something around 250 million a year. So that would make for around 300-350 million next year... Not bad in any book. Damn if only those idiot companies did not screw around with DVD... LSI should have been seeing the same oodles of cash in PC-DVD and CE-DVD this year and next and the year after next and... Anyway DVD begins next year. Down side - high reliance on Sony means risk concentration means fear about losing next generation chip accelerates. Still hoping LSI gets some part of this next gen. contract. Would bet 70-30 that LSI gets next gen. chip. Sony is not stupid. Other down-side is game connectivity migration to the internet. Ideally Sony would sell different versions of the game and incorporate STBs as well and maybe a LSI-MOT modem chip and.... (i can dream)... Short term price swings... random variables....