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What Factors Influence AMD, Intel, and NVIDIA Stocks?

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Factors influencing AMD and its rivals 

Advanced Micro Devices (AMD) operates in an oligopoly market, where one’s loss is another’s gain as other companies compete for market share.

AMD competes with Intel (INTC) in the CPU (central processing unit) market and with NVIDIA (NVDA) in the GPU (graphics processing unit) market.

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Demand environment

Both Intel and AMD rose 15.3% in the second quarter as the PC and server markets witnessed a strong demand environment. Both companies reported double-digit growth in the data center market and single-digit growth in the PC market in the quarter.

Market share

In the third quarter, AMD stock rose 114%, but Intel stock fell 17%. Intel is facing CPU supply constraints and delays in its advanced 10 nm (nanometer) products, which is limiting its potential to tap the strong demand in the market. Intel’s headwinds open a window of opportunity for AMD to gain CPU market share.

What AMD has in store for consumers

AMD is looking to leverage Intel’s headwinds and strong demand momentum in the PC and server markets to gain market share. AMD is launching a competitive product portfolio. In the CPU space, it will launch two new variants of its very-high-end Ryzen Threadripper CPUs to compete with Intel’s i9 CPUs. It is also rumored to be launching a refresh of its Vega gaming GPUs to compete with NVIDIA’s Pascal GPUs.

In 2019, AMD will launch its 7 nm product range of server and PC CPUs and GPUs, which could put it ahead of Intel in terms of manufacturing nodes.

In this series, we’ll look at AMD stock and its potential to grow further.

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