Intel, AMD Seen Headed for Lift in Q1 Earnings

Thanks to a better-than-expected server market, Intel and AMD are both on track to beat their estimates when they report their first-quarter earnings, according to an analyst with Broadpoint AmTech. Both firms have rolled out new chips targeting the high-end server market, which positions them well to benefit from an uptick in sales.

Server Watch has the story about the improved forecast for Intel and AMD, and what the full-year forecast looks like for the companies.

Stating it believes server sales are being underestimated by Wall Street, Broadpoint AmTech’s latest report predicts both Intel and AMD will post better-than-expected earnings in the first quarter.

Broadpoint analyst Doug Freedman said the server sales recovery will continue in 2010. Because these processors are more expensive and deliver higher profit margins, both chipmakers figure to exceed analysts’ revenue and earnings targets.

Both chip firms have new high-end products out for servers. AMD (NYSE: AMD) released the eight- and 12-core Magny-Cours, while Intel (NASDAQ: INTC) is now shipping the eight-core Nehalem-EX and will introduce new Westmere-generation 32nm Xeon processors later this month.

Broadpoint projects server sales of approximately 14.1 million units this year, up 19 percent year-over-year and from its previous estimate of 13.9 million units. It expects more action in the first half of the year, with the second half cooling off to 7 percent and 5 percent year-over-year growth in the third and fourth quarter, respectively.

Read the full story at Server Watch:

‘Rising Tide’ for x86 Servers Lifting Intel, AMD

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