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There was intense speculation earlier this year about a Dell-AMD partnership, though the final verdict of that round of guesswork was that an AMD shocker would be unlikely.

But it seems that our early guesswork was probably the last thing on Dell’s mind as it has recently announced that it would start using AMD’s Opteron processors in its high-end servers by the end of 2006. Although Dell will still sell Intel-powered servers, this move is set to reduce Dell’s absolute reliance on Intel for its top-of-the-line servers.

Whether this announcement comes as an attempt to assuage investors after its poor earnings showing recently or as an attempt to salvage its reputation among corporate buyers that have clamored for AMD servers since their rise to fame, we have no idea.

But whatever it is, the announcement has been proclaimed as a positive one for Dell - with analysts arguing that this shake-up will do wonders for Dell’s growth prospects and shareholders pushing up Dell’s share price. Me? Well, I’m all for more competition in the microprocessor space, and AMD’s recent successes definitely constitute as Good Competition.

dell, amd, intel