It seems like every other amateur computer builder has joined the fan club of either Intel or AMD for their processor needs. It is no secret that Intel builds over-all more capable processors; if you are willing to cough up the extra cash for diminishing returns in the area of performance. AMD has typically been seen as the more cost effective solution for gaming (though, this is highly debatable currently), and sells over all less expensive processors.
Regardless of personal preference, what does the stock market say about each of these companies? As of the publishing of this article, Intel's stock has declined 2.51% (56 cents) for the day, and AMD's stock rose a decent 3.36%(9 cents). Both companies have been struggling in an overly mature PC market, where sales are contracting. Intel has suffered, and arguably, they can afford to lose more. AMD has had to recently announce lay offs between 20% and 30% of their work force, and this move to stay profitable is likely responsible for their stock gains today.
Unfortunately, with markets contracting, there may not be room for two processor companies in the PC arena. The smartphone market already has Qualcomm and Nvidia as two established companies producing mobile processors. Intel has roughly 75% of the PC CPU marketshare, and AMD is losing ground. Can AMD adapt by cutting its staff, or do they need to head in an entirely new direction? Tell us what you think.
