The good news for AMD keeps coming: just days after the announcement that it will acquire major graphics card producer ATI, it has also been reported that the first batch of AMD-powered Dell systems are not far off. The development takes a significant chunk out of AMD's processing chip competitor Intel, which has in the past skipped along merrily, hand-in-hand with Dell.

Much like the reasons behind AMD's surprising acquisition of ATI, Dell is changing its strategy -- and allegiances -- in order to revive itself.

In recent months, competition from HP, Gateway, and others have slowed Dell profits to a crawl, leading the company to branch out in the products it offers within its systems. Since both Intel and AMD have considerable cult followings, Dell can now proposition its consumers with both brands. (Source: arstechnica.com)

Certainly, Intel is now in tough. Most experts believe AMD's primary rival will see profits shrink, with its investors -- who can't be too pleased with Dell -- finding a definite decline in growth and gross margins. (Source: arstechnica.com)

The Dell-AMD development will prove most interesting in the coming months, especially with the release of Intel's Core 2 processor.