Intel’s Shortage Could Help AMD Gain Market Share

Intel (INTC) is a leader in the PC CPU (central processing unit) market, with an ~80% market share. Its only other rival in the market is Advanced Micro Devices (AMD). Intel’s 14nm (nanometer) node supply constraints opened a window of opportunity for AMD to sell its CPUs to more consumers and increase its market share, as it did during the GPU (graphics processing unit) shortage. AMD could increase its market share by offering competitive 12nm Ryzen CPUs (which compete with Intel’s CPUs in terms of price-to-performance metrics) and its transition to TSMC’s (TSM) 7nm node in 2019.