Intel’s new chip projects could turn AMD’s fortunes, analysts say

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Feb 18 (Reuters) – Intel Corp’s latest focus on chipmaking to meet growing demand will give Advanced Micro Devices Inc (AMD.O), its biggest rival in the server and PC market, a boost. chance to further establish itself in the segment, analysts said.

Intel, which plans major investments in chip technologies over the next four years, said Thursday that it expects revenue from its PC-hosting segment to grow to low to mid-digits, and that its data center and AI business increases in teens from 2023 to 2026. .

Shares of the company fell about 6%, while those of AMD slipped 1% on Friday.

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AMD’s market capitalization briefly overtook Intel’s earlier this week when it closed its $50 billion Xilinx deal. AMD is now about $1 billion less than Intel’s market capitalization of about $182 billion, both a far cry from Nvidia’s $585 billion (NVDA.O).

In servers, AMD held less than 5% market share in 2018, but now holds 15%. It could go up to 25%, said Ruben Roy, an analyst at WestPark Capital. On PCs, he expects AMD’s market share to hit 20% from its current range of 18% to 20%.

“We believe market share gains will continue as Intel tries to catch up on manufacturing process technology.”

But Wall Street is less enthusiastic about Intel’s latest chip projects, which analysts said lacked “credibility” amid fierce competition, and included moderate gross margin growth and aggressive spending. Read more

Piper Sandler analyst Harsh Kumar said there were no imminent threats to Nvidia and AMD in Intel’s ambitious roadmap. “Intel only plans to return to normal cadence, but it’s not really expected to take a significant share.”

Once the market leader in semiconductors, Intel gave way to Samsung Electronics in 2021 for the first time since 2018, according to Gartner data, while AMD slipped from 14th to tenth place.

(This story has been reclassified to correct a typographical error in paragraph 4.)

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Reporting by Chavi Mehta and Nivedita Balu in Bengaluru; Editing by Shinjini Ganguli

Our standards: The Thomson Reuters Trust Principles.

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