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Negative Report Clips Rambus Shares by 19%

March 21, 2000|Bloomberg News, Times Staff

Shares of highflying Rambus Inc. (ticker symbol: RMBS) apparently got hammered Monday from a report by a computer hardware Web site.

Rambus plunged $76.61, or 19%, to $317.02 on Nasdaq, cutting its gain this year to 370%.

A report on Tom's Hardware Guide (http://www.tomshardware.com) said Rambus' technology, which lets personal computers take full advantage of Intel's fastest chips by speeding information from one chip to another inside the computer, doesn't work as well as older and cheaper technology.

"The stock is getting killed because of the report," said Drew Peck, an analyst at SG Cohen Securities who has a "neutral" rating on the stock. "In this environment, it doesn't take much to tip it over. It's more or less 'shoot first and ask questions later.' "

Tom's Hardware Guide offers various technology articles and tips on computer-oriented hardware equipment, such as video cameras, processors and other items that improve computer performance.

Meanwhile, other chip stocks picked up positive reports from Wall Street analysts, including:

* Lam Research Corp. (LRCX; close and change: $48.81, down 19 cents), rated "top pick," and KLA-Tencor Corp. (KLAC; $77.06, down $2.94), Applied Materials Inc. (AMAT; $94, down $1.86) and Teradyne Inc. (TER; $84.75, up $1.75), rated "buy," all in new coverage by Donaldson Lufkin & Jenrette Securities.

* TelCom Semiconductor Inc. (TLCM; $28.38, down $2.75), reinstated "strong buy" by CE Unterberg Towbin, with a target of $40.

* And Micron Technology Inc. (MU; $135.63, up $6.75), raised to "buy" from "neutral" by Bear Stearns, with a $225 target.

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