Intel is Struggling, and AMD is Gaining

Intel is Struggling, and AMD is Gaining

Let us check the stocks. On Thursday, Intel Corp. showed some ill effects. Nevertheless, some of the pains of the company could be a result of gains from a smaller rival.

Intel reported a ten percent drop in its sales of server chips. Furthermore, it reported a one percent gain for its PC division. Shares of Intel decrease more than nine percent in after-hours trading. Shares of its main rival, in contrast, Advanced Micro Devices Inc. gained more than two percent at times in after-hours trading. Thus, it showed that investors were betting that AMD was taking some of the gains that were not there for Intel.

PC-centric revenue growth of Intel of only one percent was somewhat surprising. It is because of the report of substantial overall gains for PC-s and seven percent growth in the second quarter. IDC reported, earlier this month, that PC shipments had their best growth in a decade in the third quarter. It is because of schooling and working from home.

Dean McCarron works of InStat Research. He is an analyst there.

McCarron tracks the X86 market. So, he said that it is possible AMD had some gains in the PC market thanks to the pandemic. It is because some buyers looked for lower-end PCs for studying and working at home. Intel executives talked with analysts on the company’s call. They said that average selling prices in sales of PC chips were down six percent. It is because of the increasing volume in their education segment and consumer entry.

Intel

McCarron said in an email that for PCs, they would not know until AMD announces. AMD has a more massive mix of consumer versus business. Thus, they tend to do better in the second half. COVID has disproportionately impacted business PCs. Therefore, Intel has been hit harder than AMD has.

Also, datacenter suffers from a lack of corporate buying. Intel said that datacenter revenue was lower than it forecasted. It is because of a fall-off in spending by government customers and enterprises. Also, it saw a considerable boost in datacenter sales in the second quarter, when revenue soared forty-three percent.

Furthermore, Intel said that the data center market is in one of its consumption phases when the cloud companies add all the server capacity they just purchased. George Davis is Intel Chief Financial Officer. He said that their guide assumes that cloud segment demand moderates when key customers enter a digestion period after multiple quarters of above-trend line growth.

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