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 : Wind River going up, up, up! -- Ignore unavailable to you. Want to Upgrade?

To: w2j2 who wrote (3554)	8/25/1998 8:51:00 PM
From: Peter Church	Respond to of 10309

This article from the street.com indicates Intel's strategy for server chips.It doesn't mention I2O, but I think that is part of the package. thestreet.com Just look at the higher-margin markets. While Intel fends off AMD and Cyrix at the low end, at the high end it's the aggressor, gaining market share for server chips, a more lucrative market that has been dominated by Sun Microsystems (SUNW:Nasdaq) and Digital Equipment, a unit of Compaq (CPQ:NYSE). Intel now holds about 10% of the server-and-workstation market, which is impressive since it only entered the market three years ago, says Dean McCarron, a principal with market research firm Mercury Research. Although DEC and Sun are worthy competitors, the server-chip markets are free from pricing pressures and cloning issues. Customers tend to buy what they view as the best on the market. "By focusing on server products Intel could compensate for an awful lot of low-end processors," McCarron said. Intel also has a powerful ally that buys only Intel chips: Dell (DELL:Nasdaq). Even better, in its latest earnings announcement Dell said it doubled its server sales. Intel is wasting no time in muscling into the server market. In June, it released the 400-mhz Xeon chip and earlier this month it began selling the 450-mhz Pentium II chip. Next year it plans to release the 500-mhz Pentium II, named the Katmai, the 64-bit Merced chip and the 600-mhz Cascades.