Intel itself set a low bar for the second quarter, projecting gross margin of 48% -- its lowest level in years, due to what it said will be weaker-than-seasonal revenue and the start-up costs associated with readying its manufacturing facilities to produce the next generation of chips. A.G. Edwards analyst David Wong reckons that Intel may have actually lost market share to AMD in the second quarter, the effects of Dell's ( DELL ) line of AMD-based machines hitting store shelves at Wal-Mart ( WMT ) and Toshiba building its first line of notebooks featuring AMD chips. "We would not be surprised if AMD achieves better sequential sales and unit growth than Intel in the June quarter, boosted by the benefit of one-time special considerations," Wong wrote in a recent note to investors.