We've all been discussing it for years and there have been rumors every few months about this happening. We all know Dell finally added AMD chips to their server line of computers, so maybe this time it's true they are rolling it out to all their products.
Big upside for AMD here if they really have a contract with Dell.
I would go into a whole stock discussion, but figure I'd start that in the Finance section sometime.
http://news.moneycentral.msn.com/pro...613&ID=5794225
June 13, 2006 05:57 PM ET
NEW YORK (AP) - Dell Inc. could roll out a desktop computer based on an Advanced Micro Devices Inc. chip as early as September, according to a Wall Street analyst.
The report comes less than a month after Dell Inc. said it would begin using chips made by Advanced Micro Devices Inc., spurning its longtime partner Intel Corp.
"Citigroup Investment Research has confirmed from industry sources that Dell will offer an AMD based desktop in September of this year. No details of box configuration are available. We note that AMD has recently expressed confidence that they will gain share in the second half of the year, and we point to this win as the basis for this confidence," Citigroup analyst Glen Yeung wrote in a note.
Yeung noted that although the Dell news is good, the company's results could get nipped by price cuts, weak computer sales and share lost to Intel in the server space.
Shares of AMD closed down $1.29, or 5 percent, at $24.39 in Friday trading on the New York Stock Exchange. Meanwhile, Dell's stock added 21 cents to end at $25.10 on the Nasdaq, and lost 1 cent in aftermarket activity.