AMD denies IBM share stake rumours

AMD denies IBM share stake rumours
Tom Foremski
Advanced Micro Devices (AMD) has denied reports that IBM is planning to invest in the troubled chip maker saying that IBM is a customer and a manufacturing partner but not an investor.
The news drove down AMD’s share price as shareholders expressed concern that without IBM, AMD will face problems with winning new customers and expanding manufacturing operations to help it compete against low-end microprocessors from Intel.
AMD this week reported a larger than expected loss but it said that K6 microprocessor yields were improving and it was making good progress in its transition to a 0.25-micron process. IBM also said that it’s new Aptiva PC models feature K6 microprocessors and are shipping this week.

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