Shares of

Advanced Micro Devices

(AMD) - Get Report

took a joyride Friday as news circulated that server giant

Dell

(DELL) - Get Report

may adopt AMD's server chip.

The stock jumped 7.4% in recent trading, offering a timely backdrop as AMD's annual meeting with financial analysts got under way Friday morning. Shares were up $1.37 to $19.96.

Including early Friday gains, AMD shares have vaulted 17% in one week, helped along by positive pre-meeting buzz and two investment bank upgrades.

Reuters

reported that Dell Chief Executive Officer Kevin Rollins said Thursday that his company has been "studying closely" the possibility of using AMD's silicon for in its servers. He said, however, that Dell as yet had no formal plans to adopt the chip.

Investors and analysts have repeatedly speculated that Dell -- which has so far remained an

Intel

(INTC) - Get Report

-only fortress -- would relent and pick up AMD's well-regarded Opteron chip for servers. Earlier this year, such rumors caused a stir in

June and

March.

Among the big server makers, Dell is the only company that doesn't offer AMD-powered boxes.

IBM

(IBM) - Get Report

,

Sun Microsystems

(SUNW) - Get Report

and

Hewlett-Packard

(HPQ) - Get Report

all sell Opteron-based servers.

Analysts have lately offered warm praise for AMD's progress in the server chip market, which has occurred at Intel's expense. In a note

upgrading AMD shares to a buy rating Thursday, Merrill Lynch analyst Joe Osha wrote, "We don't think there's any workable strategy that Intel can use to counter AMD's share gain in the server processor market."