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Chip and Chimp Zilla's analyst ratings downgraded

Do you want the good news or the bad news, Mr Barrett?

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There's good news for Chipzilla - archrival AMD has been downgraded by Wall Street analysts and had five per cent knocked off its share value yesterday, closing at $29.

But the not-so-good news is that Intel has also been given the analytical thumbs down, closing at $61.25 - six per cent down on the day.

Both chip makers were cut to 'market perform' yesterday by Banc of America Securities, where a senior analyst slammed Intel's slow ramp of processors and cockups such as the Caminogate i820 chipset fiasco and the recall of faulty 1.13GHz Pentium IIIs.

AMD executed better, but, with only 15 per cent of the chip market, has gone largely unnoticed, claimed the analyst.

Despite a promise that Intel would increase chip shipments in the second half of the year, there are indications that the company will still fall short of the mark not just for the third quarter but for the fourth quarter as well, adversely affecting both tier one and two OEMs in the all-important run up to Christmas. ®

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