What happened
Actions of Advanced micro devices (NASDAQ: AMD) jumped 16.5% on Friday after rival Intel (NASDAQ: INTC) He said he would delay the launch of his new processor chips.
And that
AMD recently introduced its new Ryzen 4000 Series processors that are built through an advanced 7-nanometer manufacturing process. They have strong graphics capabilities and promise powerful gains in performance and energy efficiency. They are expected to help AMD compete effectively with Intel in the high-end gaming market, as well as in the mass consumer PC market.
Shares of Advanced Micro Devices rose sharply on Friday as Intel shares fell. Image source: Getty Images.
AMD’s market share gains can now be made even easier. Intel said in its second-quarter earnings report that it will delay the launch of its 7-nanometer chips for at least six months. The delay will give AMD a valuable advantage, something Intel may have a hard time recovering from.
Now what
The once powerful Intel is now struggling. The chip giant recently lost a major contract with Apple, which will soon begin creating its own chips for its popular Mac computers. Intel’s latest delay with its new 7-nanometer chips is just another black eye for the previously formidable company.
Meanwhile, AMD is taking advantage of the missteps of its rivals. Increases in market share have propelled its shares to earnings of more than 50% so far in 2020. And with more likely customer gains, AMD’s share price could continue to trend upward.
