14 DAY TRIAL // Advanced Micro Devices announced yet another price slashing movement of its dual core central processing units in an attempt to get a better position and more market share for the upcoming holiday season, while at the same time preparing for the launch of the Phenom class of quad core processors and the reiteration of the already released Opteron CPUs that are using the same quad internal architecture.
On the other side of the fence Intel is preparing too as the company announced the imminent launch of two high performance desktop chipsets, as well as the soon to come release of its 45 nanometer processing units that are poised to directly compete with AMD's product lines.
Well, when all things are considered it looks like we have another price war in the making and to this conclusion came the marketing research firm Morgan Stanley that published a report saying that a price war in the CPU sector is imminent. The very first effect of this report was that Intel lost $0.57 or around 2.2 percent from its shares and arrived at a closing price of $25.81 in the United States.
At the same time, Advanced Micro Devices' shares fell by 3 percent but then took an ascending route and closed the day at the same general level of $13.23. The marketing research company Morgan Stanley said earlier this week that the overabundance of central processing units on the market is going to lead to another price war between the two rival companies.
Apart from Intel and AMD, Micron Technology was affected by this announcement too, that registered a loss of $1.05 per share, reaching a low level of $10.74 and that after the company recently posted negative results during the fourth quarter of the year. Not even Nvidia was spared by the Morgan Stanley recommendation to investors to sell stock, as the graphics processing units manufacturing company lost some ground in Europe and Asia.
As Intel is one of the most important hardware producing companies in the whole world, the fact that it lost ground and share points affected a great number of other companies active in that field, even if they are not directly related with the central processing units manufacturing process.