AMD Gains, Intel Loses

    March 3, 2006
    WebProNews Staff

As AMD scores a hot deal with Google to provide the Opteron chips in the new hardware it buys, Intel sees its share of the server market dip, and its financials and stock price follows.

It’s not a fund week to be Intel CEO Paul Otellini. Not only did search advertising Goliath Google decide to give AMD more of its IT purchase orders, but weaker overall demand for Intel processors led to the two words Wall Street hates more than anything: revenue warning.

Intel’s first quarter revenue forecast of $9.1 billion to $9.7 billion have been sliced down to $8.7 billion to $9.1 billion, the chipmaker announced in a statement. Weaker demand and a “slight” loss of market share contributed to the change.

Also, Intel had something extra to add in its disclosure of those weaker numbers today:

Effective with this announcement, Intel has begun its “Quiet Period.” Intel’s Business Outlook, published in the company’s fourth-quarter earnings release dated Jan. 17, 2006, and in its Form 10-K for the year ended Dec. 31, 2005, no longer reflects the company’s current expectations. The company plans to provide a new Business Outlook when it reports first-quarter financial results on April 19, 2006.

Intel also expects its gross-margin percentage to be “adversely impacted by the change in revenue,” but expenses for the period should be lower. Shares of Intel actually ended up slightly at $20.32, a 37-cent increase from market open. Trading was incredibly brisk, with over 202 million shares in play, compared to some 86 million yesterday.

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David Utter is a staff writer for WebProNews covering technology and business.