The stock was up 16 13/16 at 97 1/16 on volume of more than a million shares. Ameritrade said before the market opened Jan. 25 it would split its shares 2-for-1 as of Feb. 5. Since then the stock has nearly doubled from its Jan. 22 close of 50.
AMD Scores Coup in Intel Rivalry
Advanced Micro Devices
is trying to take a bite out of rival chip maker
A report in
PC Week Online
will use AMD chips in its personal computers. Trading in AMD was delayed at the opening, but opened firm. Its shares were recently up 1 3/4 at 24 11/16. Intel was down 1 3/4 at 139 3/16.
"It's been my belief for years that AMD would penetrate every OEM
original equipment maker except
," said Mark Edelstone, analyst with
Morgan Stanley Dean Witter
. "With AMD selling pretty competitive products, it's well deserved for them" to get the deal. Edelstone has a neutral rating on AMD, and Morgan Stanley Dean Witter has no underwriting relationship with AMD.
The analyst said that the news is another example of the increase in competition to which Intel will be subject, and he added that "1999 is going to be one of the most competitive years we've seen for microprocessors." Edelstone said the news was a "consumer win" for AMD, but he expects the company to get into the business segment slowly with its K7 chip.