AMD and Intel (INTC) are both chip suppliers for personal computers and servers. They cannot be any more different.
AMD is a growth company that sells premium CPUs and graphics cards. Business is so strong that GPUs sell for at least three times the retail price. AMD released a budget, entry-level GPU that performed worse than is card sold six years ago. Retailers sell this card for twice the price.
Intel dominates the budget and mid-range market. It also manufacturers chips. It is not fabless like AMD. That gives Intel the control to produce more chips as demand rises. Alder Lake’s release makes up for Intel’s disastrous previous generation launch in early 2020.
The chip firm expects profit margins will not expand until after 2025. Investors did not expect this, even though Intel said it would spend billions for building plants worldwide. In the GPU space, Intel will delay its Q1 launch into the second quarter. It must release a mid-range and high-end GPU to take Nvidia’s (NVDA) and AMD’s market share. Graphics cards are in short supply. Crypto mining is still in high demand, pressuring GPU supply.
Intel must sell GPUs in mass volume this year. Furthermore, it must release solid device drivers that are stable. That would lift INTC stock higher.
