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Dell Inc., the world’s largest maker of computers, may shift significant part of its business to microprocessors from Advanced Micro Devices, an analyst said in a report. The initial batch of AMD central processing units (CPUs) acquired by Dell will be up to 2 million, the report from Bank of America reportedly said.

“Dell has ordered between 1 million and 1.2 million desktop computers with Advanced Micro Devices processors and about 800 thousand notebooks,” Bank of America financial analyst Sumit Dhanda said in a report, a story at Cnet claims.

According to the assumptions of the analyst, the numbers would mean that the world’s top supplier of personal computers is awarding AMD 15% to 16% of its desktop business and 18% to 19% of its notebook business.

Back on Thursday Dell said that it would release desktops running microprocessors from AMD in September, but did not say anything about the notebooks, even though earlier an anonymous Dell executive in Asia confirmed laptops featuring central processing units from AMD. Despite of this, even if shipments of mobile computers with AMD chips are delayed to a later date that is not discussed at this time, shift of 15% of Dell’s desktops to processors from Sunnyvale, California-based chipmaker is a considerable hit for Intel Corp., who has been exclusive supplier of CPUs to Dell.

Mr. Dhanda reportedly raised his estimates for AMD’s financial performance because of the deal to $23 per share from $19 per share, while his expectation for fourth-quarter revenue rose from $1.38 billion to $1.51 billion. Nevertheless, Dhanda believes AMD’s profit margins are under pressure because of higher expenses, changes from the plan to acquire graphics chipmaker ATI Technologies, and Intel’s new competitiveness.

Neither AMD, Dell or Intel commented on the news-story.


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