uploads/2019/04/Intel-AMD-CPU-market-share-3-1.png

Should Intel Worry about AMD’s Progress in the CPU Market?

By

Updated

Server chip market

Intel (INTC) has been leading the CPU market, one of the semiconductor industry’s most profitable segments, for several years. However, the 10nm[1.nanometer] manufacturing issues it has encountered since October have hurt its market share, and rival Advanced Micro Devices (AMD) is gearing up to expand in the fast-growing server chip market. According to PassMark Software, Intel’s market share is shrinking while AMD’s is growing.

Ready to put your morning scrolling to use? Sign up for Bagels & Stox, our witty take on the top market and investment news straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.

Article continues below advertisement

Intel facing competition from AMD

Intel’s recent launch of 90 versions of the Xeon processor, including the Xeon Platinum 9200, are aimed at meeting customer’s changing needs. Some Intel customers include Amazon (AMZN), Alphabet’s (GOOGL) Google, and Microsoft (MSFT).

However, Intel is facing intense competition in the server chip market from AMD, which launched its second-generation 12nm[1.nanometer] Zen chips last April and plans to launch second-generation EPYC server CPUs in mid-2019. AMD is using a 7nm node from Taiwan Semiconductor’s (TSM) manufacturing process for its chips. Wells Fargo has downgraded its rating for Intel to “market perform” from “outperform” because of this competition.

Advertisement

More From Market Realist