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Technology Stocks : IDTI - an IC Play on Growth Markets -- Ignore unavailable to you. Want to Upgrade?

To: Medisco who wrote (6257)	2/2/1998 11:36:00 AM
From: Xianming Liu	Read Replies (2) \| Respond to of 11555

It appears that there are currently more demands than supplies in low-end Pentium/compatible CPUs. The two reports by the Lehman analyst posted that this site have both suggested the difficulties encountered by AMD in its transition to 0.25 um. In addition, NSM, in its pre-announcement this moring, also indicated that it has difficulties to ramp up production of Cyrix chips for meet the demands (see biz.yahoo.com. Finally, I have noticed that the low-end Pentium CPU price at retail channels have been fairly stable (even moved up in certain cases) in last 2-3 months even though Intel has cut the (higher end) of Pentium price agressively. For example, I bought a 150 Mhz Pentium and a motherboard combo for my office in late Novemeber for $152 at Fry's Electronics in LA. However, I noticed that Fry's was advertising the same combo for $159 on last Friday's LA times. Similarly, Fry's was selling 100 Mhz Pentium/motherboard for $109 in early December. But it is asking the same combo for $119. The price of 133 Mhz/mother combo also appears to have moved up about $5-$10 when compared with 1-2 months ago. Since Intel started to phase out the production of non-MMX Pentium about 4-5 months ago, the stabilitiy of the low-end non-MMX Pentium may be primarily a supply issue. However, it does sugguest the strong demand for the low-end (cheap) CPU. If IDTI can ramp up C6/C6+ Winchip quickly with good yield, IDTI's future is bright.