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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: stockycd who wrote (18102)	3/23/1998 9:09:00 PM
From: Teri Skogerboe	Respond to of 70976

And sometimes even when it is not so old. Tuesday March 17, 4:48 pm Eastern Time RESEARCH ALERT-Merrill chip analyst sees price war NEW YORK, March 17 (Reuters) - Chip market oversupply, weak pricing and slow market growth are likely to depress semiconductor stocks versus the overall market for the rest of the year, Merrill Lynch analyst Thomas Kurlak said Tuesday. In a research note, Kurkak said the unfavorable market conditions could drive stock prices in the industry to new lows this summer as companies struggle to overcome slowing demand for end products, particularly personal computers. In addition, prices for 64-megabyte Dynamic Random Access Memory (64 Mb DRAM), which are replacing older lower-cost 16Mb chips in the market, are already falling and a price war could erupt in the highly competitive DRAM market, Kurlak argued. In a note outlining his neutral rating on DRAM giant Micron Technology (MU - news), Kurlak said, "It is still not too late for investors to avoid what is shaping up to be a 64 Mb bloodbath, in our opinion." Overall semiconductor market growth is expected to remain "below trend" for another one or two years, he said. Copyright c 1998 Reuters Limited. All rights reserved.