Great news: AMD and IBM announce a new server...
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AMD's Athlon lands slot in IBM's server line
By Jack Robertson
EBN
(03/11/01, 10:12:41 PM EST)
Putting another dent in Intel's armor, IBM Corp. will shortly introduce a line of front-end network servers using dual Athlon processors from Advanced Micro Devices Inc., Sunnyvale, Calif., making it the latest OEM to break ranks and put AMD MPUs in its corporate systems.
IBM will be among the first tier-one companies to design Athlon into a server line. Sun Microsystems is using older AMD K6-II chips in a low-cost front-end server offered through Sun's Cobalt division. Compaq Computer, NEC, and Micron Electronics have selected Athlons for high-end workstations and business desktop PCs.
Meanwhile, in another setback for Intel, an analyst at Merrill Lynch & Co. Inc., New York, has advised investors against buying shares in Intel Corp. as a "core long-term holding."
The recommendation came because of continuing weakness in the PC microprocessor market and the likelihood that the Santa Clara, Calif., company may be unable to protect its average selling prices from pressure as high-end server and desktop PC sales decline further.
"Owning Intel as a trade makes sense, but this stock is not a long-term core holding," said Joseph Osha, a Merrill Lynch analyst, in a research report. "Intel's MPU business is worse than the company is admitting."
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