AMD postponed the release of quad-core Barcelona chip

AMD's plan to release the upcoming 4-core Barcelona processor in July has been delayed and had to be rescheduled until October 2007. This move may make AMD lose more than rival Intel.

Sales of Intel and AMD are based primarily on server chips, so AMD's delays will make the company's revenue fall back in 2007.

" Barcelona is considered to be AMD's best opportunity to regain server market share from AMD. Therefore, delaying the release of this chip will certainly negatively affect its overall revenue. " Analyst Glen Yeung of Citigroup said.

Glen Yeung also estimates AMD's losses will be higher than expected by Thomson Financial - predicting that AMD will have $ 2.47 per share in 2007.

A few months ago, AMD promised to launch Barcelona in the first half of this year to help the company regain its advantage over the price competition with Intel. However, this incident is really bad news for AMD.

Barcelona is considered the cornerstone of competition with server chips with Intel. Although Intel has released a quad-core AMD chip for several months, Barcelona's capabilities are still "highly rated". AMD said the chip will provide higher performance for memory-hungry applications compared to Intel's Xeon Clovertown quad-core chip.