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Zacks Analyst Interview Highlights: Intel, AMD, Dell, Rackable Systems and Opsware

Posted on: Tuesday, 12 June 2007, 06:50 CDT

Zacks.com releases the latest Analyst Interview. Today's interview is with senior analyst Steve Biggs, who discusses Intel (Nasdaq: INTC), AMD (NYSE: AMD), Dell (Nasdaq: DELL), Rackable Systems (Nasdaq: RACK) and Opsware (Nasdaq: OPSW).

A synopsis of today's Analyst Interview is presented below. The full article can be read at http://at.zacks.com/?id=2678.

There's an issue of "commoditization of hardware" currently ongoing. Can you tell us a little bit about this?

Well, sure. Companies are having a harder and harder time keeping up with the commoditization and price declines in hardware. For example, within, say, the server market, as we go towards more Intel (Nasdaq: INTC) and AMD (NYSE: AMD)--based machines and away from the larger Unix-based machines, prices have declined very rapidly. It's benefited some of the companies that specialize in this kind of stuff.

Obviously, Dell (Nasdaq: DELL) was a beneficiary of it, although they're having some problems in other areas, such as PCs. They certainly benefited from this trend in servers as well as a few others, like Rackable Systems (Nasdaq: RACK) and some of the software companies.

Another thing you're seeing is virtualization of servers, and that's going to continue to grow as Intel and AMD release more powerful processors that can handle more functions -- such as the two-way processors that are going to continue to increase to four, then eight, and on and on over the next few years. So that becomes a benefit to some of the software companies that enable server virtualization. Opsware (Nasdaq: OPSW) is one that I cover that's a beneficiary of that.

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Source: Business Wire

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