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Wednesday, October 04, 2006

Intel, The Monopoly (INTC)(AMD)

Now that the European Union is almost done with its antitrust actions against Microsoft, it has decided to turn its guns on Intel. The complaints appear to be based primarily on complaints from Intel's smaller rival, AMD.

AMD has been flapping its gums recently about taking more and more share from Intel, even going so far as to say that it could have 40% of the global server chip market by 2009. AMD has slightly more than 20% of that market now.

However, Intel has a vexing way of improving its products and the AMD plans to gain more of the market may be hitting the road blocks of Intel's improved chips. Intel s also working on chips that could communicate with one another using lasers, a move that could transform the chip market completely.

The market is not voting with AMD. Intel's stock is up about 5% over the last six months. AMD's shares are off over 20% during the same period.

What you can't win in the market, maybe you can get in the courts.

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

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