AMD Shares Drop After Dell Rumor Quelled

[YKhan]

I'm not so sure the Dell-AMD rumours have been quelled. It's basically
a battle of the analysts, where Piper Jaffray's analyst says that Dell
is definitely going with AMD this quarter, and the Deutsche Bank
analyst saying no. I'm inclined to believe that the DB analyst is right
about Dell, but I think his assertion that Intel will field a
competitive product against AMD by the middle of this year is
hopelessly optimistic. But anyways here's the full article for your
read down below.

Yousuf Khan

AMD Shares Drop After Dell Rumor Quelled: Financial News - Yahoo!
Finance
http://biz.yahoo.com/ap/060113/advanced_micro_devices_mover.html?.v=1

[quote]NEW YORK (AP) -- Advanced Micro Devices Inc. shares dropped
sharply on Friday after a Wall Street analyst said the chip maker's
fourth quarter may be its "last quarter of strong momentum" and shot
down rumors that the company may land a deal with Dell Inc.

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Deutsche Bank analyst Ben Lynch, who downgraded the stock to "Sell"
from "Hold," said although the Sunnyvale, Calif.-based AMD will likely
report a strong fourth quarter, competition from Intel Corp. could
stall AMD's momentum in 2006.

"We believe Intel's roadmap refresh and improved product availability
will increase its competitiveness versus AMD, leading to slowing AMD
momentum in calendar year 2006," Lynch wrote in a research note.

Further, the analyst said rumors that AMD may soon sign a deal with
Dell seem unwarranted.

"Contrary to some recent market talk, our checks indicate that AMD is
not likely to penetrate the Dell account any time soon," Lynch wrote.

Analysts polled by Thomson Financial expect the company to earn, on
average, 25 cents per share for the fourth quarter on $1.66 billion in
revenue, and 88 cents per share for 2006 on $5.62 billion in revenue.

Shares of AMD, which have traded between $14.08 and $37.46 over the
last year, were down $1.49, or 4.2 percent at $33.86 in afternoon
trading on the New York Stock Exchange. Shares of Intel, which have
traded between $21.89 and $28.84 over the last year, gave up 9 cents to
trade at $25.88 on the Nasdaq.[/quote]