Advanced Micro Devices saw its stock climb 26% yesterday on news that the computer chip maker had agreed to settle its legal disputes with rival Intel. Whether consumers should be as excited about the deal as AMD shareholders is another matter.

The settlement, which calls for Intel to pay AMD $1.25 billion, will resolve a four-year-old antitrust case filed by AMD in a Delaware federal court. AMD accused Intel of using illegal tactics to bully computer manufacturers like IBM and Dell into using Intel microprocessors. Intel...