AMD is lagging behind Intel

Uncomfortable warnings about profits announced by AMD last week showed that the company is under heavy pressure against rival Intel.

AMD is also suffering from a " under-the-ground " situation in the server chip market when Intel has achieved a high advantage with new 4-core server models. This situation is different than a year ago when AMD gained a lot of market share thanks to more efficient chip designs than Intel.

According to analysts, AMD may have to cut prices by up to 40% for server chip models to achieve a balance in the price war with Intel. Meanwhile, AMD's revenue from the last quarter's processor increased by only 3% despite a sharp increase in the number of products sold.

As for Intel, revenue has not been bright in the past - the result of competitive pricing with AMD. Intel's fourth-quarter profit fell 40% over the same period last year; while revenue reached 9.43 billion USD, down 7.5% from last year.

In addition, Intel also had to restructure the organization, dissolve some ineffective business divisions, and expected to lay off more than 10,000 employees in the future to refocus resources for operations. Develop new PC processors.

AMD has lagged behind in the "quad core" server chip race with Intel. It is not until the middle of this year that this 4-core version of the chip can be completed, and of course, the competition with Intel's similar products will be worse because the Intel quad-core chip has been available for a while "launch" space in the market.