Tech Stock Sensei

AMD Stock: Superconductor Company Now Favored Over Intel?

An AMD processor

Intel Corporation is the market leader in the superconductor industry, but it seems its market dominance is in shambles as Advanced Micro Devices, Inc. is giving the company a run for its money. AMD stock has made a spectacular comeback, especially with its Ryzen line-up. AMD’s R&D budget is negligible when compared to Intel’s. The company was on the brink of bankruptcy a few years ago. However, it’s now flooding the market with excellent products. Benchmark tests conducted by several sources have confirmed that Ryzen chips outperform Intel SKUs under multi-threaded workloads.

Investors were hopeful after a reinvigoration in the PC market reported earlier in 2017. However, it seems that Intel’s core business will face harsh times ahead. According to IDC‘s latest report, personal computing device shipments will drop to 398.3 million in 2021 — from 435.1 million in 2016. Intel makes over 95% of its revenues from the PC business. Overall, dynamics of the industry are swiftly changing, as GPU’s replacing CPU as the center of the chips business. GPUs will be widely used in image processing, gaming, AI and IoT.

Related: Should You Buy Sony Stock While the Demand is Robust?

In May, Intel investors were shocked after NVidia endorsed and recommended AMD’s Ryzen chips for Battlebox-branded PCs. Advanced Micro Devices has become a major threat to Intel. AMD is aggressively rolling out several chips for gamers. Intel will have to lower its prices to survive in the highly competitive market. Price cuts will hurt the company’s bottom line. AMD has a variety of products for almost every category of customers. The company recently launched EPYC and Threadripper to crush Intel’s market share.

Advanced Micro Devices is gearing up to launch a new version of its much-awaited Raven Ridge APU, according to media reports. In order to minimize
its effect, in a pre-emptive move, Intel recently upgraded its i5 and i7-line of U-series mobile chips to quad-core configurations. Intel is down over 3% year-to-date, while AMD stock is up about 14% in the same period.

Related: Could Netflix Thrive Against Disney Streaming?



Exit mobile version