Intel’s troubles are AMD’s opportunities
Intel (INTC) is a leader in the PC CPU (central processing unit) market, with an ~80% market share. Its only other rival in the market is Advanced Micro Devices (AMD). Intel’s 14nm (nanometer) node supply constraints opened a window of opportunity for AMD to sell its CPUs to more consumers and increase its market share, as it did during the GPU (graphics processing unit) shortage. AMD could increase its market share by offering competitive 12nm Ryzen CPUs (which compete with Intel’s CPUs in terms of price-to-performance metrics) and its transition to TSMC’s (TSM) 7nm node in 2019.
PC vendors increasingly adopt AMD’s CPUs
DigiTimes stated that desktop and motherboard vendors Asustek, ASRock, Gigabyte Technology, and MSI are using AMD CPUs, which could drive AMD’s PC CPU market share above 20% in Q3 2018. This share is expected to reach 30% in Q4 2018 as more PC vendors adopt AMD CPUs in light of Intel’s CPU shortage.
Reddit user Ingebor compiled August’s CPU sales data from German tech retailer Mindfactory. The data showed that AMD sold more CPUs than Intel, claiming 51% of the market. This share gain came as AMD was launching its second-generation Ryzen processors and reducing the price of its first-generation Ryzen processors. In August 2017, AMD’s market share was 52%, and Intel’s was 48%. But Intel’s eighth-generation Coffee Lake processors boosted its share of the market to 61% in January and February. If Intel launches its rumored ninth-generation CPU this year, it could regain its lost market share. However, Intel could risk losing to AMD if it delays the 10nm Cannon Lake beyond 2019, which we’ll discuss next.
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