Friday, February 25, 2011

Advanced Micro Devices' (AMD) Battle Against Intel (INTC), Nvidia (NVDA)

Advanced Micro Devices (NYSE:AMD) competes with Intel (NASDAQ:INTC) and Nvidia (NASDAQ:NVDA) in the PC microprocessor and graphics businesses.

Our price estimate for AMD stands at $9.30, which is roughly in line with market price. The company recently launched a marketing campaign to better promote its products against competitors. Intel, for one, has continuously overshadowed AMD.

Does AMD's stock value stand to gain from these initiatives? Here we assess the outlook for a few key metrics.

Intel and AMD have competed against each other in the PC
microprocessor space for decades, with Intel consistently holding by far the majority market share. AMD holds a decent position in the desktop market with about 28% market share, but the stagnation of the desktop market remains a major concern. What hurts AMD is that it is losing a foothold in the markets that are growing: servers and notebooks.





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2 comments:

Anonymous said...

agree with the statement about AMD is losing the market in servers. IBM has recently dropped AMD in most of high end servers, and has focused on Intel x_86 based platform as Intel chips outperform AMD ones in both per cpu core base and per cpu socket base.

Anonymous said...

agree with the statement about AMD is losing the market in servers. IBM has recently dropped AMD in most of high end servers, and has focused on Intel x_86 based platform as Intel chips outperform AMD ones in both per cpu core base and per cpu socket base.