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

To: Paul Engel who wrote (76821)	3/19/1999 6:12:00 PM
From: Tenchusatsu	Read Replies (3) \| Respond to of 186894

<The upshot of this is that IF (VERY BIG IF) the K7 works as planned and IF they can deliver chip sets/motherboards, etc for server applications (even with 3'rd party support), AMD will attempt to blow the server market apart with the cheapest prices you can imagine for these CPUs.> That doesn't make sense at all. The server market isn't about the price of the CPU, or else Intel wouldn't be able to sell the Xeon for a grand or two per CPU. But the price of the CPU is the only component in the server that AMD can drop. So what if AMD prices the K7 at $1,000 less than a comparable Xeon? What are they going to do, tell a customer that they can save $4,000 on a $40,000 server? If the processor, chipset, or server platform is even a little less stable than Intel's, that's going to cost the customer much more in lost work and downtime. The only way that AMD will put the hurt on Intel in the server arena is to kill the Xeon on multiprocessing performance alone. And that's not going to happen until AMD raises the K7 frequency, switches the L2 cache to a larger full-speed SRAM, and comes out with chipsets which can match the performance of comparable Intel chipsets. Tall order? You bet. Possible? Of course. Likely? Not. Tenchusatsu