Bad news for AMD fans

Nov 16, 2005 15:40 GMT  ·  By

AMD (Advanced Micro Devices) faces large demands for its latest chips. Company officials stated that they expect sales to grow twice with the help of the chips that power notebooks and corporate servers. AMD is for the moment the number two microprocessor company.

Recent news covered the fact that AMD overtook Intel on the US retail market. Also, the holidays are said to witness a tough competition between the two companies, as AMD is going to put on sale though Wal-Mart US$398 laptops and desktop computers.

AMD expects to increase the average selling price of all it chips because of the market conditions.

The company has seen success with its Opteron dual core chip that contains two processing engines on a single piece of silicon, helping companies to cut energy costs and improve performance. In October, Intel began selling a similar chip, but at the same time withdrew the release of another server chip platform originally set for early 2006, until midyear.

Research firm Mercury Research said that by the end of the third quarter, AMD's share of the x86 was up to 12.7% from 11.2%.