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Technology Stocks : Data Race (NASDAQ: RACE) NEWS! 2 voice/data/fax: ONE LINE! -- Ignore unavailable to you. Want to Upgrade?

To: William T. Katz who wrote (26223)	12/3/1997 12:35:00 AM
From: Marshall	Read Replies (2) \| Respond to of 33268

[OT]: Bill, you've been around these cycles before, do you remember if this fits? Found in another post on the S3 thread, this is part of an article today written after (of course) the chip & PC company downgrades: >>>Analysts say demand for chips is slumping for several reasons. For one thing, the breathless race to upgrade processing power in personal computers is probably coming to an end. One reason, says Kurlak, is that so many people these days are using PCs to get on the Internet. As any Net surfer knows, things move slowly in cyberspace because of bandwidth problems, not because your computer is underpowered. And until bandwidth problems are resolved, says Kurlak, Net surfers won't feel any need to clamor for more horsepower under the hood. But even off-line computer users face performance constraints that have nothing to do with chip speed, says semiconductor analysts Drew Peck, of Cowan. Weak graphics chips slow things down, and lots of software is not built to make use of top-end processing power. Because of constraints like these, "users are not able to derive more functionality from buying higher power processors," says Peck. Result: future chip upgrades will be greeted with yawns." If I recall we've seen this scenario before. Wasn't it shortly afterwards a few of these "analysts" found that since the corporates had most of their PCs already at sufficient speed they were turning their technology budgets towards upgrading their networks? I would also think that if the server & desktop hardware upgrades were to temporarily stagnate we'd eventually be seeing an increase in HDD storage add-on sales again. Yes, Drakes and a few others are very good at what they do - almost like old pros. While I don't think Nick falls into this class his personality is certainly different.