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AMD, Gateway near deal?
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February 1, 1999: 1:41 p.m. ET
Computer maker reportedly set to break ranks with Intel for new PCs
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NEW YORK (CNNfn) - Gateway Inc. is preparing to introduce a new line of personal computers powered by chips from Advanced Micro Devices Inc. instead of those made by Intel Corp., according to published reports Monday.
The North Sioux City, S.D.-based computer maker is expected to unveil PCs based on AMD's (AMD) forthcoming K6-3 chip in March. The agreement was first reported by the computer trade magazine PC Week.
Gateway (GTW) will offer the new line of PCs at prices cheaper than those equipped with Intel (INTC) chips, sources close to the negotiations told the magazine.
AMD and Gateway officials declined comment on the matter.
Swaying a longtime Intel customer would be a boon to AMD, which is locked in an intense battle with Intel for the low-cost PC market.
AMD's K6-3 processor is scheduled for a March release, which is when Intel is due to ship the Pentium III. Intel also recently introduced 366-MHz and 400-MHz versions of its Celeron chip, which is designed for low-cost PCs.
AMD shares climbed 2-1/4 to 25-3/16 in midday trade, while Gateway shares slipped 5/8 to 76-5/8. Intel shares were down 2-3/4 to 138-3/16.
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