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Tech Earnings Season: Updates on Alibaba, Apple, Snap, and More

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Part 6
Tech Earnings Season: Updates on Alibaba, Apple, Snap, and More PART 6 OF 6

Why Intel Is Teaming Up with Advanced Micro Devices

Intel to join Advanced Micro Devices to make a powerful chip

Chipmakers Intel (INTC) and Advanced Micro Devices (AMD) have joined hands to make a new chip that will combine Intel’s processor with AMD’s Radeon GPU (graphics processing unit). The move is aimed at battling common rival Nvidia (NVDA).

The chip is expected to be very powerful with great processing speed. It’s expected to run high-end video games on thin laptops, according to a Wall Street Journal report. The move is an example of the complex ever-changing dynamics of the chip industry.

The chip could help Intel resolve its portable obstacle by making powerful chips without using bulky laptops that are typically used for gaming.

Why Intel Is Teaming Up with Advanced Micro Devices

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Intel wants to offset the declining PC market

With this move, Intel is trying to offset tepid PC (personal computer) sales, while AMD is trying to make a comeback for its GPU. AMD has lost market share to Nvidia in recent years.

Global PC shipments have declined from ~350 million in 2012 to ~260 million last year and are expected to decline further. Intel has ~80% market share in the PC processor space and stands to lose the most from the declining PC market. With this new chip, the company is hoping that gamers will be attracted to lightweight yet powerful notebooks.

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