Server makers have been moving to add Advanced Micro Devices 's quad-core chip to their product lines, despite what amounts to a six-month delay by AMD in getting the processor out the door.
Indeed, if AMD hadn't been hit with problems in the new chip, code-named Barcelona, it would seem as if nothing had changed for the company; server makers have been making product announcements based on the new chip despite the delay. AMD said this month that Barcelona is now ready to ship in volume -- an announcement that's been quickly met with commitments from vendors to release new platforms using the chip.
And, according to John Fruehe, manager of worldwide market development for AMD's server/workstation products, other vendor announcements are expected.
But the past six months have been rough on AMD since a bug in the L3 cache used by Barcelona turned up last year. As a result, AMD's value has taken a hit on Wall Street, the company has announced layoffs and most recently it lost Phil Hester, its senior vice president and CTO.
AMD will report its quarterly earnings after the close of markets on Thursday, although its stock price was up more than five percent by late afternoon Wednesday to about US$6 -- less than half of what it was when it announced the quad-core last September. AMD's price may be getting help from Intel, which said its first-quarter revenue increased by more than 9% to $9.7 billion.
Regarding the overall economic climate in the U.S., Intel President and CEO Paul Otellini told analysts on a conference call this week that 75 percent of Intel's revenues are not in the U.S. "So we don't see this really impacting our business at this time and haven't seen it so far in the last couple of quarters," according to a transcript on the conference call on Seeking Alpha.