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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 206.14

-4.1%

Nov 25 3:59 PM EST

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To: Ali Chen who wrote (73910)	3/7/2002 3:11:53 PM
From: Joe NYC	Read Replies (1) of 275872

Interesting article on ZDNet: zdnet.com.com New processors emerging from AMD and Intel--whose main focus has until now been desktop chips--will allow many companies currently locked into expensive computer systems to switch to mainstream chips and open software like Linux, Cox said. The new Itanium line from Intel and the upcoming Hammer range from AMD offer similar performance to the RISC processors made by the likes of IBM and Sun Microsystems, but aim to achieve desktop-level prices. "Large numbers of people will be able to dump a lot of expensive hardware," said Cox in an interview with ZDNet UK. "It will effectively extend the PC into a whole new market area. It could be as big as the 386." The 386 was an Intel processor introduced in the late 1980s, known to Linux developers as the first consumer processor powerful enough to run industrial-strength software like the Unix operating system. At this point, it looks like AMD has an advantage in the fact that they will be the first ones to deliver 64bit computing to the desktop level prices. The x86 is like a tsunami, which levels everything in its path. The disappearance of all kinds of minis, mainframes, workstations is a direct consequence of inexpensive x86 based chips. AMD wants to extend the x86 prices to x86-64, while Intel setting up a straw hut, just like the ones that were sweapt by x86 tsunami. I think the processor to watch is Deerfield, which is supposed to be the first lower cost, more mainstream CPU. Even though I don't think Itanium and Hammer are direct competitors, Deerfield may actually be a competitor that Intel may use to invade the inexpensive desktop level pricing. Joe

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