Intel (NASDAQ:INTC), AMD (NYSE:AMD) and the Future of Chip Wars

Intel (NASDAQ:INTC) and AMD (NYSE:AMD) are interesting companies to compare at this time, as they're both strong in PCs, notebooks, and netbooks, but have missed the push into tablets, with is the growth area of the future for chips.

They are no longer the only major players either, as companies like Nvidia (Nasdaq:NVDA) are entering the playing field as legitimate contenders.

At this stage of the competition, Intel continues to hold the lead over AMD, as they still dominate the PC market. Even though the PC market is shrinking, it's still a major force in the overall market. Even so, as measured by value, AMD is stronger in PCs than Intel.

Intel is ahead in notebook processors, where just under 50 percent of the value of the company is estimated to be driven by them. Servers account for about 23 percent of the value of Intel, with PCs at about 11 percent of the value of the company.

When measured against notebooks, AMD is better-positioned with PCs, which account for just under 30 percent of the value of the company, with notebook processors just behind them at about 27 percent.

Concerning the emerging tablet market, which could significantly cannibalize PC sales in certain demographics, neither company has anything going for it, although Intel has thrown out its Atom processor into the mix. AMD has nothing to offer yet in tablets, and is the key reason for removing their CEO recently. AMD is also lagging the mobile market as well.

Depending on how quickly smaller screened devices replace PCs, AMD could be under a lot of pressure in the long term, depending on how quickly they can get a tablet and mobile strategy going.

Intel is ahead of them in those markets, and can work on marketing and expanding, rather than getting a product in place for those segments, as AMD must do.

AMD closed Thursday at $8.33, up $0.04, or 0.48 percent. Intel closed at $21.57, up $0.19, or 0.89 percent.