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Technology Stocks : CYRIX / NSM -- Ignore unavailable to you. Want to Upgrade?

To: literaryfx who wrote (30114)	10/28/1998 2:02:00 PM
From: literaryfx	Respond to of 33344

The Aptiva Conjecture. After both AMD and NSM both go out of their way to terminate foundry agreements with IBM, what company in their right mind would jump into bed with IBM to make a CPU. STM must have considerable technological and/or foundry weaknesses that would hinder it from becoming a major player in the new system-on-a-chip market. The shortness of time between the termination of the NSM/IBM foundry agreement and the announcement of the Cyrix-based Aptiva has led me to speculate that, while undercutting NSM on price with its share of Cyrix CPUs, IBM got the bright idea of entering the Sub-$600 PC market using its Cyrix CPUs, instead of selling them. IBM would gain entry to the new low-end PC market, using Cyrix technology, for the cost of manufacturing the CPUs. No wonder NSM wanted to terminate the foundry agreement. With the recently inked STM/IBM partnership agreement, one can easily connect the dots to the Aptiva. The problem with this type of strategy is that such alliances tend to fall apart as the goals of the participants diverge over time. Ken