Wall Street mixed on AMD plan

Advanced Micro Devices’ announcement Monday that it will sell server microchips based on British firm ARM Holding’s design – as well as the x86 design AMD has long used with Intel – has Wall Street chattering.

In a note to their clients, Raymond James’ analysts called the news “a true sign that there are seismic shifts in computing at play today,” and added that AMD is in the unique position “to address both x86 and ARM markets.”

But a note from analysts at Bernstein Research was less optimistic, in part because AMD won’t be selling the ARM-based server chips until 2014. “Given the rapid deterioration in their finances,” it said of the struggling Sunnyvale chipmaker, “we are not sure they have that much time.”

 

Steve Johnson Steve Johnson (236 Posts)

Steve Johnson covers the microchip industry, cyber security and the big-technology sector that includes Hewlett-Packard, Oracle and Cisco Systems.