How is AMD's performance compared to Intel?

AMD is gaining market share from its larger rival Intel, with its shares climbing 3% as analysts note Intel's ongoing market share losses.

What is driving AMD's growth?

AMD is reinforcing its position with its Ryzen and EPYC platforms, benefiting from Intel's transition costs and margin pressures. AMD's expanding GPU lineup and higher gross margins also contribute to its more resilient outlook.

How will the semiconductor industry shift impact AMD and Intel?

As Intel grapples with costly transformations, smaller players like AMD are seizing ground, with analysts' generally positive price targets for AMD underscoring the broader semiconductor shift.

Home / Business and Economy / AMD Surges as Intel Grapples with Costly Transition

AMD Surges as Intel Grapples with Costly Transition

25 Jul

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Summary

AMD shares climb 3% as Intel loses market share
AMD's Ryzen and EPYC platforms reinforce its position
AMD's higher margins and leaner costs boost its outlook

AMD Surges as Intel Grapples with Costly Transition

This past Friday, shares of Advanced Micro Devices (AMD) climbed around 3% as analysts highlighted Intel's (INTC) ongoing market share losses to AMD. Investors are growing more confident in AMD's ability to continue grabbing business from its larger rival.

J.P. Morgan analysts noted that Intel's shift toward a more fabless model won't pay off for another 18-24 months, leaving AMD to reinforce its position with its Ryzen and EPYC platforms. They expect sustained momentum in AMD's server CPU shipments as cloud providers and enterprises favor its cost-efficient designs.

Additionally, Morgan Stanley pointed to Intel's margin pressures from startup costs and restructuring charges, contrasting with AMD's higher gross margins and leaner expense base, which paint a more resilient picture for the company. Market watchers also emphasize AMD's expanding GPU lineup as a secondary growth driver, with generative AI workloads fueling demand alongside NVIDIA.

As Intel grapples with the transition costs, AMD stands to pick up share in both the PC and data center markets. Analysts' generally positive price targets for AMD further underscore the broader semiconductor shift, where smaller players like AMD are seizing ground as incumbents navigate costly transformations.

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