Showtime for Intel, Sun; AMD mum

Intel CEO Paul Otellini and Sun CEO Jonathan Schwartz have called a press conference at 10 a.m.

Intel CEO Paul Otellini and Sun CEO Jonathan Schwartz have called a press conference at 10 a.m. PST to talk about their server partnership. 

As reported Sunday, Sun was prepping its channel to get ready to use Intel chips in its low-end servers. Previously Sun's line of x86 servers were all AMD-powered.

An AMD spokesman didn't have any comment on Sun's deal with Intel until the announcement is official. But chances are pretty good that AMD, which also recently cut its prices, will inject a dose of perspective.

Biggest point: Sun is a small player in the x86 market. Most analysts expect Sun to adopt Barcelona, AMD's response to Intel's latest chips.

No matter how AMD responds later, Sun's deal with Intel is going to hurt. UBS analyst Uche Orji says the Sun deal for Intel is largely symbolic financially. But for AMD, this deal is going to hurt. Orji estimates that each $100 million in loss server sales to Sun subtracts 5 to 10 cents a share in earnings.

Stay tuned for AMD comments later in the day. Dan Farber will be blogging from the press conference.

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