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Technology Stocks : Texas Instruments - Good buy now or should we wait? -- Ignore unavailable to you. Want to Upgrade?

To: pat mudge who wrote (2515)	12/16/1997 12:24:00 PM
From: VulkanG	Read Replies (2) \| Respond to of 6180

I wouldn't bet my house on ADSL and telcos. You would think they learned something from ISDN, but it doesn't seem so. Only US West is offering ADSL service now while there are almost 100,000 cable modem subscribers (@Home, Time Warner, US West mostly). Prices of ADSL services are much higher than those of cable modems and have lower download speeds. While I am shorting @Home due to its valuation, cable modems are doing much better right now. I was actually sorry to see TI spend that much money, in cash, on ADSL. They could've spent that money on creating in-house teams working on specialized DSPs for certain high growth applications. As for commodization, general purpose DSPs are basically commodity products. There aren't many vendors though which is good. ADI is focusing, as of late, on working with the customers to create ASSPs (application specific signal processors), kind of like ASICs. TXN on the other hand has more manufacturing expertise than ADI or LU due to their DRAM fabs (so does MOT, but is experiencing delivery problems). This will become crucial. Take a look at Bilow's excellent posting too.