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Technology Stocks : S3 (A LONGER TERM PERSPECTIVE) -- Ignore unavailable to you. Want to Upgrade?

To: Petz who wrote (12432)	12/18/1998 4:54:00 PM
From: Kevin	Respond to of 14577

Check it out - sorry if it was already posted: Thursday December 17, 7:25 pm Eastern Time ATI hurt by technology deal by rival TORONTO, Dec 17 (Reuters) - Canada's ATI Technologies Inc. (Toronto:ATY.TO - news) lost some zip on Thursday after investors sold off shares in the world's leading graphics chip maker after news that rival S3 Inc. (Nasdaq:SIII - news) gave Intel Corp. (Nasdaq:INTC - news) access to its graphics technology. On Toronto's stock exchange ATI lost C$0.85 or more than 5 percent to C$14.75, topping the most actives list at 4.5 million shares. Under a 10-year cross-licensing deal between S3 and chip behemoth Intel Corp., the two companies will swap technology on some semiconductor products and processors, and S3 will become a partner in graphics development with Intel, analysts said. ''It certainly explains why the stock is under pressure,'' said analyst Pierre Boucher at CT Securities. ''It's certainly not positive for ATI in any way here.'' ATI dominates the world market for graphics chips, which are widely used in computers to enable users to play games and create sophisticated images. Analyst Brian Antonen at Research Capital disagreed, calling Thursday's action a dip in ATI's otherwise positive trend. ''I think the impact on ATI's price is unwarranted here,'' Antonen said. Intel is obviously acquiring some technology, which ATI has already developed, in an attempt to catch up, he added. Antonen noted that the partnership agreement between S3 and Intel is not exclusive and he forecast that ATI will remain a strong industry contender. ''I think the industry is going to consolidate and ATI's going to be one of the major players.'' ($1=$1.54 Canadian) Sounds to me like ATI is a little more nervous than they are leading on, as they should be.