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Can AMD Gain Ground on Intel?

Boot Camp feature for Friday, November 29, 2002

Can AMD gain ground on Intel? Bloomberg Boot Camp, a report on today's technology. Advanced Micro Devices has seen its market share fall to as low as 12 percent... as rival Intel has continually cut prices and introduced faster processors. But AMD CEO Hector Ruiz says the coming introduction of new Athlon 64 processors... code named Hammer, will bring a new performance standard to business PCs and eventually consumer desktops. But we asked the CEO how AMD with a 750 million dollar research and development budget can compete in the long term with Intel... which is spending 4.7 billion dollars a year... .

"You know that's a great question... I want to turn it around. I would say if I'm a smart investor sitting and looking and say, you know, AMD has been able to produce Athlon which has been an award winning architecture, we're about to launch Hammer, which is already receiving kudos by everyone as being a phenomenal feat and we're only doing it with 750 million dollars a year. So somebody ought to ask, how in the world is Intel going to be able to keep up with that?"

So how lofty are AMD's goals in terms of market share?

"Well we're ambitious. We believe that by the end of this decade we'll be able to get to fifty percent."

Ruiz says he plans to achieve that through the company's expansion into the corporate PC market... countries like China and handheld and wireless chipsets. Bloomberg Boot Camp, I'm Fred Fishkin.