Server chips boost Intel shares
SHARES in Intel jumped yesterday after the chip maker released a new line of server chips, stoking optimism that it can capitalise on a rebound in demand for computers.
"If you look at what's being offered this is another compelling reason for IT managers to buy," said Alex Gauna, an analyst at JMP Securities in San Francisco. "Anybody doing the work is hearing about good server demand continuing."
Intel, which employs thousands of people in Leixlip in Kildare, got a jump on rival Advanced Micro Devices, which plans to release its Magny-Cours design in eight- and 12-core versions later this month.
The shift to so-called cloud computing, where programs are stored in data centres and provided via the internet, is causing increasing demand for the kinds of capabilities that the new Intel chip offers.
Intel officially began selling its Xeon 5600 server chip yesterday, saying it has already shipped more than 100,000 units. Companies that bought 15 racks of Intel-based servers in 2005 could get the same performance from one rack of machines based on the new Intel chip, marketing director Boyd Davis said.
That upgrade will produce a 95pc saving in annual energy costs, he said.