Intel reaps fallout from Dell announcement
Following the announcement yesterday of Dell's plans to start offering
AMD-based servers, Intel's stock has plummeted
to a three-year low
. The stock was selling at a high of $18.85
yesterday but sunk to $17.94 this morning after the Dell
announcement, a value not seen since April 2003. Meanwhile, AMD's stock
climbed to a high of $33.95 today, up a cool $2.55 from yesterday's high
of $31.40. AMD's highest share price in five and a half years was on January 31,
when the company's stock was up to $42.10.
In a note to investors, an analyst for Merill Lynch claimed the Dell
partnership could boost AMD's server market share to 26% by the end of
the year, compared to 22.1% last
quarter and 7.4% a year before. The analyst added that growth should
continue next year, at which point AMD may hit a 30% server market share.