It's been a tough year for chip producers. Both Advanced Micro Devices (AMD) and Intel have struggled to make a steady profit for most of 2006, despite Intel's release of the Core 2 Duo and AMD's continued success in marketing the Athlon chip.

However, things appear to be looking a little brighter for at least one company. Although they haven't made a major release like Intel, AMD is seeing its profits jump significantly, mostly as a result of flash disc sales.

Things really did look grim for AMD. At one point, their main competition, Intel, was announcing the release of its next chip, the Core 2 Duo. Early reviews of the Core 2 were fantastic, to say the least. Most insiders pegged the chip as the processor to beat, easily taking down AMD's popular wares. For its part, AMD wasn't soon reaching the point where it could match Intel's release. In fact, AMD still doesn't plan on releasing a new chip until 2008. (theregister.co.uk)

Then came an opportunity. AMD, despite its apparent road to poverty, bought up successful video card producer ATI. That purchase reinvigorated investor confidence in the company, and the trend appears to have led AMD into the black (that's good).

Although Intel is also reporting major jumps in profits, AMD, based on its memory sales, is outpacing the competition. According to e-commerce sources, it's the first time AMD has outsold Intel in five years, and the evidence is there to suggest that such a trend could continue. (ecommercetimes.com)