AMD’s Stock Catches Intel Chip Flu
It took the market about 20 minutes on Friday to figure out that Intel’s midquarter warning was bad news for Advanced Micro Devices as well. It seems that the math isn’t adding up and if Intel is lowering their guidance and their share is at 80% then AMD shouldn’t be gaining as fast as they are. Interesting read for those who follow the chip giants.
Simply put, AMD couldn’t possibly have gained enough share to force Intel to drop the midpoint of its guidance from $9.4 billion to $8.9 billion, says Niles, whose company has a position in AMD but not in Intel. “The math doesn’t work, since Intel’s share is nearly 80%,” he says. Shane Rau, a semiconductor analyst with IDC, notes that AMD gained more than a point of share at Intel’s expense in the third quarter and may have gained as much as another point in the fourth quarter. “But this is more a statement about end demand than market-share direction,” he said.
Comments are closed.