Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Rob S. who wrote (7593)	3/29/1998 4:05:00 PM
From: Charlie Tuna	Read Replies (4) \| Respond to of 11555

Why Buy them now top 8: 1.the consumer x86 market is where the action is and idt may have the best cpu for this market.The merced / IA64 will not be coming to a home pc for the forseable future. 2.Intel's slot I has turned into a so what 3.IDT aquisition cost is cheap right now 4.IDT may get very expensive soon 5.IDT's MIPS related business 6.IDT's new fab 7.IBM's java nc 8.Glen Henry's IBM connection ...they know what they are getting

To: Rob S. who wrote (7593)	3/29/1998 6:01:00 PM
From: BigBull	Read Replies (2) \| Respond to of 11555

Rob: (Groves dreaded inflection point is here) It is my view that the Intel business model based on "the PC is it" is dying, if not dead already. The "killer apps" of the present and future will not be more and better versions of Microsoft Office. They will be, video on demand (VOD), IP telephony, and any other application that will require broadband internet access. It is these applications that will drive volume production of semiconductor products in the very near future. The PC as it is currently configured will not. A PC with a modem, even an xDSL modem will not deliver on this. Many price points in the current PC market will simply disappear. Therefore, every company (IBM included) that currently manufactures PC's will need a set-top/convergence box strategy. MSFT, AAPL, SNE, SUNW, GIC, SFA, etc. etc. have a set top strategy that they view as vital to the future growth of their companies earnings. I can't imagine that IBM does not. We know for a fact that they are heavily invested in Java. While you may be correct that IBM can obtain as many INTC parts as they desire, my answer respectfully is: Who Cares? The MIPS Risc achitecture is the slam dunk, flat out winner in the set top box market. The issue is not even in doubt. INTC's Celeron (or Pentium anything) is not even even on the field. GIC didn't want it. The Japanese don't want it. Even MSFT didn't want it. Just because IBM failed with micro channel and PC jr does not preclude them from trying make a set top/ convergence pc now. After all they don't really have to invent anything. The MSO Open cable spec is just that, open and specified. I'm sure IBM has the capability to design a competitive box around that. IBM could push their own RISC technology , but why bother when they could buy IDTs for a song. IBM needs a MIPS solution. They need one soon. IDT has one thats proven. If this set top market explodes, as I believe it will, then capacity will tighten up and hence IBM will need to secure their own supplies, never mind control who else gets parts. Why should IBM be satisfied just getting paid to manufacture a part when it can own the whole magilla (for a while at least)? Sure, IBM could sit back and collect a sleepy annuity, but the set top situation is moving fast now, and in my view, the time for head scratching and fence sitting is over. You snooze, you lose. Thats why now. The next PC I'll buy will be a fast C6+ machine. The next 3 boxes I'll buy will be superfast MIPS set tops like the DCT5000. I am a pathetically typical baby boomer consumer. Well, I know I probably left something out, like the Merced, but as a CISC chip, I don't think it has much of a future in set tops or low end machines at least not for a very long time. But of course this all just S P E C U L A T I O N. Thanks for your post.