Advanced Micro Devices has spent much of the last year and a half boasting about how it has kicked Intel around the block in the server and PC businesses. Wins at Dell (DELL) and IBM (IBM) helped support the chest thumping.
As recently as December 14, AMD (AMD) was saying that its processor business would grow at twice the industry average. The company said it would take a larger piece of the PC market, a not-so-quiet dig at Intel.
Well, it did not last long. AMD has warned that Q4 was lousy. According to The Wall Street Journal: AMD said its operating income, excluding ATI-related charges the company has forecast, is expected to be "positive but substantially lower than in the third quarter," the company said.
Beating Intel (INTC) may not have been as easy as it seemed. Average selling prices for AMD chips were down which means that its larger rival is probably putting pressure on the cost-per-chip front. It is a game of chicken AMD cannot win.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about
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