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Bill Vedder wrote:
>
> Did anyone see any news on AMD cross the tape today?
>
> Regards,
> Bill Vedder
Below is an article from the Wall Street Journal Interactive Edition.
Gene
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Dow Jones Newswires -- August 18, 1997
AMD Shares Rise After IBM Agrees To Use K6 Chip
By I-Chun Chen and Christopher Grimes
NEW YORK (Dow Jones)--Advanced Micro Devices (AMD) shares rose late
Monday after International Business Machines Corp. (IBM) agreed to use
the
renegade computer chip company's K6 microprocessor.
Analysts said the IBM agreement represents a high-profile endorsement
for
AMD, which has fought aggressively for top-tier clients.
"The point is that they have said all along that a major PC company
would become
a user," said John Geraghty, an analyst at Credit Suisse First Boston
Corp . "This is
the stamp of approval that investors are waiting for."
Under the agreement, IBM will use the K6 in its Aptiva line of consumer
computers, although the number of computers using the chip was unclear.
"To be able to penetrate their consumer division is very significant,"
said Gruntal &
Co. analyst Mona Eraiba. "The question is, what price did they have to
give IBM? I
imagine it was pretty aggressive."
AMD spokesman Dean Whitehair said he couldn't comment on details of the
IBM
agreement. He referred calls to IBM, but officials there weren't
immediately
available.
Eraiba said an endorsement from the No. 2 PC company could "pull in
some other
people who are sitting on the fence. There's a real impact and a
psychological
impact."
Another top 10 PC company, Digital Equipment Corp. (DEC), has agreed to
use
the K6. But the impact wasn't as great, Eraiba said, given the patent
infringement
suit between Digital and Intel Corp. (INTC), the leading semiconductor
company.
In composite trading, AMD NYSE-listed shares were up 5, or 13.3%, at 42
1/2, on
volume of 4.3 million shares, compared with average daily volume of 2.2
million
shares.
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