HP to Use AMD Chip in Business Computer

Advanced Micro Devices Inc. landed its first deal for a top-tier U.S. personal-computer maker to use AMD chips in a PC aimed at the business market.

Hewlett-Packard Co. said that it’s selling a Compaq-branded PC powered by AMD Athlon XP processors. The PC model is aimed at the small-and medium-business market as well as the government and education markets.

The HP deal shows how far Sunnyvale, Calif.-based AMD has come since introducing the Athlon processor in 1999, analysts said. AMD has at times been written off as an also-ran behind mighty Intel Corp., while at other times earning praise as a scrappy competitor.

AMD shares rose 57 cents to $10.50 on the New York Stock Exchange. HP fell 6 cents to $15.