For all the fuss over quad-core chips, you'd think your own PC had them now. Of course, they don't, and they won't. Quad-core chips -- that is, four processors on one piece of silicon -- are aimed at servers.
The advantage of the quad-core design is that each processor can handle a different computing task without disturbing its silicon brethren, resulting in blazing-fast performance. Intel
Intel eventually plans native quad-core, of course. So does rival Advanced Micro Devices
Some media reports suggested problems with the demonstration, which didn't show much in the way of applications running via the prototype processor. But is that really a problem? In-Stat analyst Jim McGregor, who attended the demo at AMD's analyst meeting, wasn't overly impressed with the proceedings. But that didn't diminish his view of Barcelona's importance.
"...[It wasn't] much of a demonstration except for listening to a server hum," McGregor wrote in an email response to my questions. "It is, however, an impressive chip with four cores integrated into a single cohesive solution that is in the same power range as their current dual-core products."
For McGregor, who expressed some skepticism of AMD's quad-core plans to me in August, that means the chipmaker could once again set the pace at the highest, and most profitable, end of the server market. It's at least a good bet that market leaders IBM
Interestingly, investors haven't much noticed. AMD shares are down roughly 4% since the Barcelona demonstration, because of price-fixing allegations that involve NVIDIA
That's intriguing. As much as I've been down on AMD's stock in recent months, it bears mentioning that Barcelona could ship to enthusiastic server partners during the second quarter of 2007. Meanwhile, the stock seems reasonably priced to me, and nowhere near expensive for an innovator.
In short, the weather in Barcelona, Spain, may be wonderful this time of year (63 degrees as I write). But with quad-core innovations on the way, investors may enjoy the warm glow surrounding AMD's Sunnyvale, Calif. headquarters much more.
Allow us to chip in with related Foolishness:
- AMD processed great results in the latest quarter.
- One Fool thinks its winning ways are underappreciated.
- Where do you stand in the debate over the stock's future?
- Watch AMD and Intel power down. (And Intel get greener.)
- Watch our Motley Fool CAPS participants duke it out in an all-out Fool Fight.
Intel and Dell are Motley Fool Inside Value selections. Ask us for anall-access passto the service and you'll be privy to chief advisor Philip Durell's best picks, which collectively are beating the market by more than 6% as of this writing. You'll also receive instructive lessons on valuation and company analysis. Give Inside Value a try; it's free for 30 days.
Dell and NVIDIA are also Motley Fool Stock Advisor picks.
Fool contributor Tim Beyers, ranked 873 out of 14,822 in Motley Fool CAPS, didn't own shares of any of the companies mentioned in this story at the time of publication. You can find out what is in his portfolio by checking Tim's Fool profile. The Motley Fool's disclosure policy is like chips for good salsa.
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