AMD Chips in Dell Servers by Year's End

Intel's hold on Dell is about to come to an end. The Round Rock, Texas based company announced its plans to offer AMD chips in high-end servers by the end of the year. The news came inside the computer maker's fiscal first quarter earnings, which ended May 5. Although the company did not specify a reason to adopt AMD processors, Dell may be looking for a way to cut costs in order to boost profit margins.

Dell posted an 18 percent drop in profits, amounting to a $762 million gain in the quarter. This compares with a profit of $934 million in the year-ago quarter. Revenue growth also seemed sluggish; the company reported $14.22 billion in revenues, up 6.2 over a year ago. Dell did not say if the move to AMD in its server line would eventually trickle down into its consumer products. Those PCs are currently exclusively built on the Intel platform.