Analyst Says Dell Will Use AMD Processors By Years End
Shares of Advanced Micro Devices rose Tuesday after a financial analyst predicted that Dell, the world’s largest PC maker, would begin using AMD’s chips this year. This is big news for consumers as they will finally get to see what AMD has to offer and the ability to pick between Intel and AMD.
In a note to investors, Piper Jaffray analyst Les Santiago upgraded AMD to an outperform, noting that “we strongly believe that Dell will start AMD-based system shipments as early as 2H06.” Shares of AMD were recently up $1.18, or 3.5%, to $34.43. According to Santiago, AMD chips are likely to be incorporated into 10% of Dell’s servers, 5% of its desktops and 3% of its notebooks by the end of 2006. AMD will have processors in 20% of Dell’s servers in 2007. (Santiago doesn’t own AMD shares.)
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