Wall Street giants downgraded AMD, saying Intel took disruptive actions against smaller rivals in the desktop PC space to slow its market share gains. These actions could ultimately hurt Intel itself, but for now, it’s looking to outpace its competitors with its massive manufacturing capabilities and competitive pricing offerings, and move it into the lucrative high-end notebook space. It can prevent permeation.
“Over the past few months, we’ve been more vigilant about potential PC dynamics. The outlook for the market and Intel’s recent semi-destruction using both price and capacity as strategic weapons. The industry is exacerbated by aggressive behavior, among other things, because it continues to over-ship. I’m here. Seeking Alpha“Intel seems to have decided that if the channel keeps the part, it could be their part.”
around it 53% It was from the Client Computing Group for Intel’s Q3 2022 earnings. Still, while the company’s latest generation of client CPUs (Alder Lake and Raptor Lake) are very competitive, it’s becoming increasingly difficult for Intel to maintain client PC revenue.
First, rival AMD focuses primarily on high-end CPUs for desktops and notebooks. While this will somewhat limit market share growth, it will also take revenue and profits away from Intel’s CCG.
Second, Apple, one of Intel’s most important customers, now uses its own processors in most of its computers. Apple’s PC market share is growing and it’s under control in Q3 2022 13.5% of PC shipmentsThis means Intel has lost about 13% of the PC market since late 2020, when Apple began using its own system-on-chip instead of Intel’s processors.
Finally, the PC market is sluggish, CPU sales are declining, and competition between Intel and AMD is heating up. Intel is clearly using its massive production capacity, deep discounts, and close ties with PC makers to ensure AMD doesn’t ship every unit it can.
“Naturally, this will hit Intel too, but their economy is already declining so quickly that they probably don’t care so much anymore,” Rasgon wrote, according to The Street. are reporting (opens in new tab).
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However, Intel seems to have a different opinion on the future of the PC market. The company believes the total market for available PCs is about 300 million units per year, and in 2023 the PC TAM predicts it will range from 270 million to 290 million. , Intel recently announced. PCTAM event For analysts and investors. Moreover, since Intel has competed fairly successfully with AMD in the PC space (at least based purely on unit share), perhaps its aggressive behavior is not only for AMD, but also for Intel’s customers such as Lenovo, HP, and Dell. It may be directed at Apple, which eats up the sales of . .
But for now, AMD seems to be suffering more than Apple. The company is particularly strong with its EPYC CPUs for data centers, but relatively weak in the PC market, leading Bernstein Research to lower his target per share for AMD from $95 to $80.