No AMD Chip Bug After All

Rumors of an Advanced Micro Devices notebook glitch are ringing false.

A day after issuing a note to investors suggesting that AMD's forthcoming Puma chipset for notebook PCs could be suffering from a bug, the author has put out a new note conceding that there does not appear to be any such bug.

American Technology Research analyst Doug Freedman wrote Thursday that follow-up calls with AMD have confirmed that the company is not experiencing any technical glitch.

"All issues were characterized as normal production ramp hurdles," wrote Freedman, who rates AMD a buy.

Freedman maintains that, glitch or not, PC makers are taking a cautious attitude to the new product, in the wake of AMD's other recent technical woes.

"Our checks that suggest OEMs' "just-in-case" contingency plans remain in place and we believe OEMs are taking a cautious approach to the Puma launch and will likely make a Puma transition at a slower than normal pace," Freedman wrote Thursday.

AMD suffered a well-publicized bug in its quad-core server and notebook chips last year that delayed general availability of the products.

But the company said Wednesday, in response to Freedman's original note, that it was not aware of any technical glitches affecting its notebook chips and was on track to release the new product in the second quarter.

Shares of AMD were off 9 cents at $6.61 in midday trading Thursday.