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Tuesday, September 26, 2006

Intel Thumps AMD (INTC)(AMD)

On news that Intel will introduce a new quad core chip, AMD's stock is off almost 3% to $26. And, it should be. The chip will be available for servers in two months and PCs early next year. The PC version will run 70% faster than the current product.

AMD has been gaining share from Intel lately and now has well over 20% of the x86 chip market. But, improved products and price cuts from Intel may keep AMD's market share from moving above its current high water mark.

AMD has been talking big, but the company may have been premature is forecasting that it would have 40% of the x86 server market by 2009.

Wall St. is not buying the AMD "all brag and no fact" forecasts for it market share growth.

Over the last six months, Intel's shares have been fairly flat. AMD's are down more than 20%. The market appears to think that AMD can't make its number.

Douglas A. McIntyre can be reached at He does not own securities in companies that he writes about.

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