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Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: abuck95 who wrote (12805)	1/10/1999 10:11:00 PM
From: REH	Read Replies (2) \| Respond to of 93625

Michael Dell favors Rambus: Powerfest: When Tech Stars and Moneymen Meet The cutting edge of Capitalism Erick Schonfeld The co-dependence of Wall Street and Silicon Valley is on full display for five days in early December at the annual Credit Suisse First Boston technology conference in Scottsdale, Ariz. Talk about tech power: Fully 23 of the 25 tech companies with the largest market capitalizations are on the scene. There are presentations by Amazon.com, America Online, Cisco Systems, Dell Computer, Intel, Lucent Technologies, Microsoft, Yahoo, and 100 more. The 366 portfolio managers and buy-side analysts in attendance, meanwhile, represent the majority of institutional money invested in technology. Including nontech investments, their firms collectively manage over $7.8 trillion--more than all the institutional money in the S&P 500. The mood of the conference is set by Cisco CEO John Chambers, with a keynote speech about how data, voice, and images will be carried over the same networks in the future. A consummate showman, Chambers ambulates in front of a two-story screen and down the aisle, predicting that in this new world the "fast will beat the slow, rather than the big will beat the small." The gathering is a powerful example of the way financial and tech news is disseminated these days. The markets move at the slightest hint of positive developments from the executives at hand. One reason is that CNBC is broadcasting extensive coverage of the event, which, in a weird feedback loop, can be seen on monitors in the lobby. But another factor is that the news coming out of this conference is providing investors with one of the first snapshots of what the first quarter of 1999 may look like. Stocks such as Intel, Jabil Circuit, Lucent, and Xilinx rally on news that orders are strong. When Michael Dell speaks, he gives a powerful endorsement to Rambus, a small company whose memory-chip design makes computers work faster. Result: Rambus' stock rises 9%.Similarly, an upbeat presentation by disk-drive maker Western Digital reveals that unit demand is improving, prices are stabilizing, and new drives will be out earlier than expected. Investors take this as a sign that the disk-drive market's massive losses of the past year are finally abating, and Western's stock shoots up 37%.