The past twelve months have been strange ones for the Intel and AMD rivalry. Dominant Intel's stock has dropped from nearly $30 per share to about $20, while AMD's has moved from $15 to about $40 per share. What's going on?
AMD has taken a couple of points of market share, creating a sense that Intel's dominance eroding. Even computer manufacturers who have only used Intel chips are evaluating a move to AMD. Today's WSJ reports Intel's response.
Three new chips will be introduced in late 2006. Its new program is called Core microarchitecture, designed to increase performance while reducing power consumption. This is important because electricity savings has been a major selling point of the AMD's highly competitive Opteron chip.
All three chips are "dual core" chips, meaning that there are two microprocessors on one chip. The resultant chips increase performance by as much as 80% while cutting power consumption by as much as 30%. Boosting this framework, Intel is expected to move to a "quad core" chip in 2007. Intel CEO Ortellini says employees were "energized."
(Note to Brooke: How many other company names can be formed from the letters of their CEO's last name?)
For the first time in 14 years, AMD has recaptured market share up to 40% due to its use of 7nm chips while INTC continues with the 14nm processor. As a result, AMD was the top stock performer in 2019 in the S&P 500. This is an unexpected outcome as INTC's dominance appeared at risk more due to ARM Holding and Taiwan Semiconductor.
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