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Technology Stocks : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?

To: gbh who wrote (49234)	6/24/1998 5:36:00 PM
From: Darren	Read Replies (2) \| Respond to of 61433

*** OT *** Intel's networking business is not based on a future "computer on a chip" desire, but rather is seen a driver in the industry for higher speed CPU's. They want you and I to buy the latest, fastest (highest margin) CPU. They use their graphics business, and networking business toward this end, driving the need for more robust applications, which in turn require higher speed CPUs. I have trouble understanding how networking drives CPU sales. Rather, I see it as the eventual consolidation of the various components of PC's, including high-end servers. We obviously differ on INTC's long-term goals... As I stated they are already in these businesses. As a LAN/WAN guy, I would never purchase INTC routers/hubs for a >10 node client/server installation. I tend to see these products as "retail" products devoted to small peer-to-peer LAN's, small business and home use. Again, just an opinion, but I would be interested to see what their market share is in hubs/routers -- I'm guessing <5%. Certainly doesn't show up on the balance sheet with the b-b-billions word...also, I've never even seen a corporate installation that used INTC NIC's, but I know Fry's sells them in bunches... As for INTC going into WAN's, not only would that tighten the FTC's panties, I believe it would be poorly looked upon by Wall Street as a diversion from their core business model, which is not only CPU's, but chips, chips, and more chips. I don't know whether they build chips for cellphones yet, but if they do, I could not see them then moving to buy a cell provider. More likely, they would be inclined to consolidate within the various segments of their own industry much like their record shows...Chips & Technologies, flash memory, etc. I have real trouble understanding an INTC/ASND deal, for example.