QQQQ holds on to 39, but over 5% away from its 20 day moving average. To say the selling is overdone is to put it mildly. After-hours, INTC geting clobbered on the news that DELL will use AMD server chips by year-end. This could affect the Q's, but it is compensated by a 5% bounce in DELL. We might have to wait for Monday for a real bounce. The reaction in INTC seems way overblown since the AMD chips will only be for year-end and only certain chips, not the whole line. But the markets are nervous now, it's sell first, ask questions later.
AUSTIN, Texas (Dow Jones)--Dell Inc. (DELL) Chief Executive Kevin Rollins said Thursday he doesn't expect his company's decision to use chips from Advanced Micro Devices Inc. (AMD) in some products to hurt its relationship with Intel Corp. (INTC).
Intel is "still going to be the supplier of the vast majority of our processors," Rollins said during a conference call with the news media. "We would anticipate that would continue."
Dell announced late Thursday that it will introduce high-end, multi-processor servers that use AMD's Opteron chips by the end of the year. Intel traditionally has been Dell's sole supplier of processors.
Rollins described the decision to begin using the AMD chips as a nod to customer demand.
It was "due to customer requests," he said. There is "a desire for the technology that AMD has had to offer."
Still, he said Dell will be buying relatively small numbers of AMD processors, because they only will be going into the high-end server line. He didn't comment on the prospect of Dell eventually using AMD chips in other products.
Shares of AMD climbed 14.5%, or $4.55, to $35.90 in late trading Thursday after closing the regular session up 1.9%, or 58 cents, at $31.35.
Intel shares fell 5%, or 94 cents, to $17.71 in late trading Thursday. Intel closed the regular session off slightly at $18.65.
AUSTIN, Texas (Dow Jones)--Dell Inc. (DELL) Chief Executive Kevin Rollins said Thursday he doesn't expect his company's decision to use chips from Advanced Micro Devices Inc. (AMD) in some products to hurt its relationship with Intel Corp. (INTC).
Intel is "still going to be the supplier of the vast majority of our processors," Rollins said during a conference call with the news media. "We would anticipate that would continue."
Dell announced late Thursday that it will introduce high-end, multi-processor servers that use AMD's Opteron chips by the end of the year. Intel traditionally has been Dell's sole supplier of processors.
Rollins described the decision to begin using the AMD chips as a nod to customer demand.
It was "due to customer requests," he said. There is "a desire for the technology that AMD has had to offer."
Still, he said Dell will be buying relatively small numbers of AMD processors, because they only will be going into the high-end server line. He didn't comment on the prospect of Dell eventually using AMD chips in other products.
Shares of AMD climbed 14.5%, or $4.55, to $35.90 in late trading Thursday after closing the regular session up 1.9%, or 58 cents, at $31.35.
Intel shares fell 5%, or 94 cents, to $17.71 in late trading Thursday. Intel closed the regular session off slightly at $18.65.
This entry was posted
on Thursday, May 18, 2006 at 2:34 PM.
