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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Dealer who wrote (15803)	11/14/2000 8:37:09 AM
From: Dealer	Respond to of 65232

INTC/AMDAMD Suspends Plans For Its Mustang Chip By a Wall Street Journal Staff Reporter SUNNYVALE, Calif. -- Advanced Micro Devices Inc. scrapped plans for its Mustang chip for servers, citing other products in the pipeline that could better meet customer needs. AMD said customers weren't using its Mustang chip in two-way computer servers, waiting instead to use the chip in four-way servers. But the supporting technology that would enable customers to actually use the Mustang product in a four-way configuration of servers wasn't scheduled to come out until early 2002. By then, an AMD spokesman said, the more powerful Hammer class of chips would be coming out and could serve the same purpose. The decision was also influenced by the availability, in the first quarter of 2001, of the Palomino, a chip that can be used in two-way servers. "Palomino is a better solution," said the AMD spokesman. He noted there were no engineering issues or glitches with the Mustang product, but the market just wasn't there. A server is a powerful computer that manages information on a network. AMD competes with Intel Corp. in the market for computer processors and has been gaining market share from its bigger rival for several quarters. AMD's chips are currently faster than Intel's, though those chips will face increasing competition when Intel formally announces its Pentium 4 chip. That announcement is expected next week. In 4 p.m. New York Stock Exchange composite trading Monday, AMD rose $1.25, or 6.2%, to $21.31.