Investors are piling into AMD shares and selling Intel stock after major chip security vulnerabilities were revealed earlier this week, and it totally makes sense. Enterprises will likely diversify their chip security architecture risk for mission-critical applications by buying more AMD server chips. The company's "architecture differences" have proven immune to the more problematic one of the two disclosed vulnerabilities. British tech website The Register reported Tuesday that some Intel processors have a "fundamental design flaw" and security issue, which spurred the company to confirm the problem later in the day. AMD shares are up 10.4 percent in the two days through Thursday following the report, while Intel's stock declined 5.2 percent in the period, wiping out $11.3 billion of shareholder value.
Security researchers have found serious vulnerabilities in chips made by Intel and other companies that, if exploited, could leave passwords and other sensitive data exposed. "Several researchers, including a member of Google's Project Zero team, found that a design technique used in chips from Intel, Arm and others could allow hackers to access data from the memory on your device. The problem impacts processors going back more than two decades and could let hackers access passwords, encryption keys or sensitive information open in applications," according to CNET. The discovery comes shortly after the chipmaker said it was working on a patch. In a statement released Wednesday, Intel acknowledged the problem, saying that it is "working closely with many other technology companies, including AMD, ARM Holdings and several operating system vendors, to develop an industry-wide approach to resolve this issue promptly and constructively. Intel has begun providing software and firmware updates to mitigate these exploits."
AMD launched the lawsuit against its rival Intel, the world's leading microprocessor manufacturer. AMD has claimed that Intel engaged in unfair competition by offering rebates to Japanese PC manufacturers who agreed to eliminate or limit purchases of microprocessors made by AMD or a smaller manufacturer, Transmeta. The complaint was filed in the United States District Court for the District of Delaware in June 2005. In 2005, the Japan Fair Trade Commission issued Intel a cease and desist order. The court date, originally scheduled for April 2009, was pushed back to February 2010. On June 4, 2008, Korea Fair Trade Commission fined Intel US$25.4 million for giving Samsung rebates to not use AMD processors. Some of the manufacturers involved in the case were Dell, HP, Gateway, Acer, Fujitsu, Sony, Toshiba, and Hitachi. In July 2007, U.S. District Judge Joseph James Farnan Jr. largely denied Intel's motion to dismiss. `
No lines are longer than 80 characters, TYVM. Other specified properties aren't being scored automatically at this time so this is not necessarily good news...