Intel Targets AMD With New Xeon Server Chip

Intel on Monday unveiled its new server chip, the Xeon 5100, which it says delivers double the performance of its previous leading server chip while at the same time consuming less power, the Associated Press reports via HoustonChronicle.com.

Intel also claims the Xeon 5100 chip, which boasts two computing cores on a single unit, beat out rival Advanced Micro Devices’ (AMD) leading Opteron chip in more than 25 tests used to compare competing products, according to the AP.

Intel is working to steal back some market share from its number-one competitor, AMD, and the new Xeon chip is the first of three upcoming products it plans to debut to this end, the AP reports.

An analyst with Jefferies & Co. told the AP the chip will better position Intel for competition with AMD, and said the chip manufacturer will likely be very “aggressive” in pricing the products.

Another analyst with ThinkEquity Partners told the AP that he predicted the chip will help Intel regain some market share from AMD, and that Intel will likely recover the lost share in the space by the middle of the third or beginning of the fourth quarter.

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