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 (8995)	6/25/1998 2:00:00 PM
From: Hippieslayer	Read Replies (3) \| Respond to of 11555

I'll deep throat a 8 inch burrito if IDT names an OEM by earnings. I highly doubt any top notch comp maker will sign with IDT when they have no record with this new WInchip. It is my opinion that this year will be a write off for IDT and the Winchip. I hope I am wrong, though.

To: Rob S. who wrote (8995)	6/26/1998 12:05:00 AM
From: kash johal	Read Replies (1) \| Respond to of 11555

Rob, This IBM situation will make or break IDTI. IDTI, NSM/Cyrix, AMD are all ramping up to buy wafers from IBM for the 3/4th Quarter as well as ramping up their own production lines. There is clearly going to be oversupply in the market IMHO. Which means that low end chips (300 Mhz and below) are going to be selling for under $70. And a whole bunch of them are going to be in inventory. I remember the Cyrix days when they were buying from IBM on a sole source basis. they had all those expensive wafers and high inventory. Unfortunately IBM will be have to be paid and each of these companies has to buy the wafers wether anyone wants them or not. A small company like IDT could not handle a $50-$100M write-off without savaging their stock price further. The problem they have is that they must order and start wafers in June for Q3 production and in August for Q4 production. I think there is significant jeopardy still in the IDTI story. The next 6 months will likely be brutal if they get into an over capacity situation. Regards, Kash