AMD & Intel | Balance in chip making market is changing

AMD’s 7nm chip manufacturing process is believed to be AMD’s first, in list of priorities and it maybe one of the main reasons AMD is changing the future expectations both in GPU and CPU market especially the datacenter 7 nm CPUs expected to be coming in future. One of the biggest catalysts for the respective share moves was the growing sentiment that AMD’s 7nm chip manufacturing process was now on parity, or even superior to, Intel’s 10nm process. In datacenters, the 10nm servers will not be around after 2020 and it may somthing that could worry intel and push investors toward AMD.

In a note, Rasgon said “it is now crystal clear that 10nm servers will not be here until sometime in 2020 (not a surprise to us, but we believe some investors had held out hope). This will naturally fuel the AMD narrative, who will be delivering 7nm Rome products in 2019, competing against Intel’s Cascade Lake (14nm) on a process that will not be just at parity, but superior.”. Marketwatch reports

“7nm” and “10nm” — where “nm” means nanometers — refers to how small a chip maker can make the transistors that go on a computer chip, with the general rule being that smaller transistors are faster and more efficient in using power.

After reporting earnings late Thursday, Intel shares plummeted 8.6% to close Friday at $47.68, their lowest close since late February and for their largest percentage decrease since Jan.15, 2016, when shares fell 9.1%, according to Dow Jones data.

After both chip makers reported earnings this week, analysts said that AMD is fast gaining competitive parity with, or even an edge over, Intel as it struggles with delays and management uncertainties. That could portend a sea change for a rivalry that has long been seen as a powerful champion against a plucky but typically hapless challenger. Marketwatch reports

Ramsay said “we are fast approaching a window (likely a widening one) where AMD will be on equal manufacturing footing as Intel in 2019, and actually have an advantage in the datacenter market, as 7nm EPYC ramps a full year earlier than Intel’s 10nm Xeon CPUs.”

Tags: AMD, amd stocks, amd shares,amd intel, stocks, shares, intc, intc shares, intel vs amd, amd vs intel

Mohsen Daemi
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