Advanced Micro Devices (NYSE:AMD) Grabbing Intel (NASDAQ:INTC) Chip Business

Advanced Micro Devices (NYSE:AMD) is starting to grab some of Intel's (NASDAQ:INTC) chip business after a flawed chip wreaked havoc on Intel's new release.

Leslie Sobon, AMD vice president of product and platform marketing, said, "We have some customers and retailers who have come to us specifically as a result of Intel's chip problem. Some retailers have had to take things off their shelves, so they call us to ask what they could get from our OEMs that's similar. And OEMs are asking us for product, as well."

The supply chain for desktops and laptops has been radically disrupted by the faulty chip, giving AMD a big opportunity to quickly move in in response to the disruption.

Sobon said the majority of inquiries are for chips running in mainstream notebooks that cost over $500.

When asked about the impact on the company with the new business, Sobon responded saying, "We can't quantify it because we're smack in the middle of it. It's hard to find a pattern because it's different by market and retailer, but it's all over the place in terms of opportunity."

Intel said when the first revealed the chip problem that it would probably slash about $300 million off of their first-quarter revenue, adding it wouldn't do much to hurt full year revenue. To fix and replace the chip they see it costing about $700 million.

Intel closed Tuesday at $21.64, dropping $0.06, or 0.25 percent. AMD closed at $8.24, down $0.09, or 1.08 percent.