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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: gnuman who wrote (65983)	10/7/1998 6:51:00 PM
From: Jeff Fox	Read Replies (2) \| Respond to of 186894

Gene, re:<certified servers> These systems go for 100's of thousands to millions of dollars! Right. They often ship with more than 4 gigabytes of DRAM and terrabytes of disk store. How many of these things get sold a year? A few million - It is really a pyramid of course, with the larger volumes at the lower capabilities. I believe a big word at Intel is "scalability", i.e. a line of processors that are software compatible but can provide value across a broad range of server configurations. And the CPU content isn't that great. Right - That is why the CPU module price sensitivity is very low compared to the PC market. But the CPU is the most important system hardware element. A great opportunity for a great company. And there are numerous CPU brands. Right - Lately no server provider has been successful holding major share. IBM did previously, but has not kept up. Intel is going for it and has excellent prospects. So my question still remains, how many Xeon's will sell into this market, (at which you think Xeon is targeted). A few million a year in the next two years - increasing at a very attractive growth rate for the next ten years at least. Sure look's like a good business for the makers, though. Yes, but it has been tough in that with such a fractured market and such high sales support requirements even the leaders have languished. This is the motive why HP partnered with Intel - to be a leading part of a share breakthrough and thus assure HP's continuing success in this business. Jeff