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 Technology Stocks : DELL -- Ignore unavailable to you. Want to Upgrade?



To: HeyRainier who wrote (175487)4/8/2006 1:16:51 PM
From: Dan3Read Replies (1) | Respond to of 176358
 
Re: Guess that means Dell's been forgotten.

Dell took a real hit to the gut when Intel embraced Apple so publicly and enthusiastically. Dell has been looking over the hill and boring, with Apple expected to take share from it.

Things might be getting a little more exciting, though. Picking up AMD as a supplier could change all that overnight. AMD mysteriously pulled in foundry production at FAB 7 by 6 months and increased this years ramp rate at their new FAB 36 by 54%. It's hard to imagine why there was a need for so much additional output at AMD unless there are Dell orders in place.

Dell has been locked out of about a third of the profitable mid range and high end server markets because it had only Xeon on Intel platforms with which to compete. Dell didn't have access to AMD's "plug and play up to 16-way" Opteron platform. Dell's also been without a 64-bit notebook (other than 10lb P4 monsters).

And that would mean Dell is entering several new segments while not giving up anything in its existing markets. It would mean a guaranteed major jump in market share, revenue, and profits.

OTOH, the last 37 times it looked like Dell was going to move up to AMD, nothing happened - but it was also true that until next quarter, there's been no capacity at AMD for Dell to take whether they wanted it or not. Now that's changing.


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