Dell Testing AMD Waters

Updated from 2:28 p.m. EST

Is Dell(DELL Quote), the staunchest ally of Intel(INTL Quote) in the computer world, ready to see other people?

In a research note published Monday, Legg Mason analyst Cody Acree noted that Dell has quietly begun selling processors made by Advanced Micro Devices(AMD Quote) on its Web site. Dell is not offering any computers with built-in AMD processors; rather, it is selling stand-alone AMD chips.

"Whether Dell will, or will not, offer AMD systems is anyone's guess, but the likelihood seems to be increasing, in our opinion," wrote Acree, whose firm has provided services to Intel in the past 12 months. "Why would Dell be willing to sell stand-alone MPUs if the next logical step were not to begin offering complete systems?" ...