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Rambus stock rockets on Intel support

Rambus shares jump over 36 percent on expectations that Intel will reaffirm its support for the developer of computer-chip technology.

Rambus shares rose over 36 percent on expectations that Intel will reaffirm its support for the developer of chip technology at a conference that begins today, an analyst said.

Shares of the Mountain View, Calif.-based firm at the 1 p.m. PST close of regular trading had climbed $40.28, or 36.15 percent, to $151.72. The shares have risen 46 percent in the past week.

Intel, the giant chipmaker, is expected to make positive comments about Rambus' technology at the Intel Developer's Forum, said Mark Edelstone, an analyst at Morgan Stanley Dean Witter. The three-day conference in Palm Springs, Calif., will feature speeches by chairman Andrew Grove as well as other Intel executives including Albert Yu, Paul Otellini and Mark Christensen.

Rambus' memory-chip standard was used in Intel's 820 chipset that was released in November. Santa Clara, Calif.-based Intel is using Rambus' technology in its race against Advanced Micro Devices and others to get ever-faster chips onto the market.

The expectation of positive comments has led to "short-covering" in Rambus' stock, helping to drive the price higher, Edelstone said.

Shares of Intel rose $4 to $109.88 yesterday. They've risen 74 percent in the last year.

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