Intel Tuesday reaffirmed its support for Rambus's Rambus Direct RAM memory technology after reports said it would phase out support for the memory technology in favor of less expensive alternatives.
"There's no change," said company spokesman Howard High. Rambus stock fell 20 percent Tuesday morning, based on a trade publication report.
An article in Electronic Buyers' News said that, according to a document it obtained from Intel, Intel would phase out the Direct RDRAM-enabled 820 chipset in the first quarter of next year. By the middle of the third quarter, Intel will only be supporting an enhanced 850 device designed for workstations and high-end PCs, the magazine said.
SG Cowen analyst Mark Grossman said the "article confirms our cautious stance on Rambus". Grossman has a "neutral" rating on the stock.
Full story to follow.
Reuters contributed to this report.
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