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: Scumbria who wrote (8988)	6/24/1998 3:11:00 PM
From: Rob S.	Read Replies (1) \| Respond to of 11555

Exactly right. Intel can be assured that they will get a 25% premium for most of the parts that they sell. Their marketing "push" is worth that much to many OEMs and retailers. Intel also has the high end SMP capable parts and higher speed grades that continue to command a stiff premium compared to the "sweet spot" of market demand for desktop PCs. All other competitors must figure out how to eek out a profit on much tighter margins. IDTI design and fab groups must execute nearly flawlessly over the next several months or their WinChip efforts will be wasted, or, worse yet, a huge drain on company resources. IBM is a nice back-up to manufacturing the parts and needed ingredient in gaining major OEMs, but the premium paid to Big Blue will eat much of the potential for profit in this tight market. I am long on IDTI and wish them the best - but until we have a confirmation that WinChip is succesful, this stock is going to stay in the 7-8 range, IMO.