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Rumors Buzz Again About Dell Considering AMD

Rumors that Dell may be considering Advanced Micro Devices' server chips are again causing a stir.

AMD's stock shot up Friday after press reports quoted Dell Chief Executive Officer Kevin Rollins saying his company is studying the possibility. That set off a flurry of chatter on blogs and among Wall Street traders. At the end of the day, AMD stock closed at $21.02, up $2.43 on the New York Stock Exchange.

Analysts say a move by Dell to AMD 64-bit Opteron processors would be in line with the computer firm's ambitions to push higher into IT enterprise installations.

IT industry consultant Terry Shannon, publisher of Shannon Knows High Performance Computing, wasn't too surprised by the latest twist.

"Why would Dell go to AMD," Shannon asked rhetorically. "Two words: price performance. I'm sure Dell has been considering this for a long time."

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