14 DAY TRIAL // Google is changing its servers' configuration so that it becomes compatible with the Advanced Micro Devices chips, which will replace Intel's products, a Morgan Stanley announcement said.
Google, which owns more than 200,000 servers, has started to buy an increasing number of Advanced Micro Devices Opteron processors, Morgan Stanley's analyst Mark Edelstone said. At the same time, he has changed his estimation for the incomes earned by AMD.
"We believe that Google has started to buy AMD Opteron processors for nearly all of their new server purchases," Edelstone said. Google "will help AMD to enjoy a significant sequential increase in their server business in the first quarter".
Adding Google to its client base, it's likely that AMD will succeed to ruin the analysts' estimations for this quarter.
This change came as a bomb for Paul Otellini, Intel's CEO, who, among other things, is also on Google's board of directors.
AMD is the second largest processor producer, right after Intel, but in the last four months, the Sunnyvale-based company has succeeded to grab more than 20% of the market for the first time in the last 4 years.