Filed under: Competitive strategy, Intel (INTC), Advanced Micro Dev (AMD)

It is not very many chips, but it means a great deal, especially from a PR standpoint. Intel (NASDAQ: INTC) has taken the processor franchise at Dreamworks from smaller rival AMD (NYSE: AMD). Dreamworks indicated that the Intel products worked much better, a public slap at the incumbent.

According to The Wall Street Journal, “DreamWorks Animation said the resulting increase in computing power would substantially shorten the time needed for many computing chores and aid the studio’s planned shift next year to 3-D animation.” Given how good the press is for Intel, it should be giving the chips to Dreamworks for free. Perhaps that is how it got the contract.

Intel’s new eight-core chips are extremely powerful and this should be of real benefit to Dreamworks.

The news is another demonstration of how bad things are at AMD. The company still has over $5 billion in debt and barely breaks even on an operating basis. Its shares are just above $5. In 2006, they were above $40.

AMD can ill afford having its name on the front page matched with another customer loss.

Douglas A. McIntyre is an editor at 247wallst.com.

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This entry was posted on Wednesday, July 9th, 2008 at 12:10 pm and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.