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Technology Stocks : 3DFX -- Ignore unavailable to you. Want to Upgrade?

To: Baldur Fjvlnisson who wrote (7454)	9/21/1998 1:24:00 PM
From: Frank Sheridan	Read Replies (5) \| Respond to of 16960

RE: Why on earth is it (TDFX) trading for $9 share? After thinking about this at great length I have come to the following conclusion about TDFX: The market has decided that although TDFX has superior technology compared to Intel, Intel has much greater manufacturing and marketing ability. Since TDFX is competing directly against Intel (VooDoo2 vs. i740) TDFX has been identified as being cannon fodder for Intel. One of the reasons that I was initially bullish on TDFX is because processor speed is becoming increasingly irrelevant to the perceived value of a PC, whereas a good 3-D accelerator has the potential to add a lot of extra value from a customers point of view. I felt that TDFX had a good chance to take this market for itself, however since Intel decided to ship the i740 chip for less that $10 a chip (almost certainly less that it costs them to manufacture) they have really skewed the 3-D chip market in their favor. As Nathan Brookwood of Dataquest put it, "The 3-D market is a market filled with a lot of really good products at really bad prices." Short version: Intel will keep pushing their inferior products at extremely low prices until they succeed in driving everybody else out of the 3-D accelerator market. Just my opinion. This is why I finally dumped this stock. You just can't win if your competition is Intel or Microsoft. Regards.