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Google Switching Servers From Intel To AMD

SAN JOSE, Calif. — Search engine giant Google Inc. is switching its internal servers from microprocessors made by Intel Corp. to chips from rival Advanced Micro Devices Inc. (AMD), according to wire reports.

The reports, which cited Morgan Stanley as its source, said that Google has more than 200,000 internal servers worldwide. The search engine company has started to buy AMD’s 64-bit Opteron processors for almost all new purchases, according to the reports, which cited Morgan Stanley analyst Mark Edelstone.

The switch could be a blow for Intel and company chief executive Paul Otellini, who sits on Google's board.

It could be a boom for AMD, which has struggled to get a significant foothold in the corporate market. Edelstone raised his estimate for AMD's first-quarter profit to $0.33 a share from $0.31. He raised his 2006 estimate by $0.10 to $1.70 a share.

Microprocessor supplier AMD scored a minor victory in its long uphill fight to wrestle the processor market from Intel, as the company recently overtook its archrival in the U.S. retail PC sector, according to market research firm Current Analysis.