Filed under: Launches, Industry, Consumer experience, Competitive strategy, Intel (INTC), Advanced Micro Dev (AMD)
Intel (NASDAQ:INTC) does not seem to be satisfied with the beating it’s giving AMD (NYSE:AMD). It wants to bring out an even larger line of chips aimed straight at its rival.
According to The Wall Street Journal, the chip company “gave new details of plans to introduce chips that pack four, six, eight or more electronic brains on a piece of silicon to boost calculating performance.”
AMD has a new quad-core chip called Barcelona, and many of the company’s plans to recover market share are based on the product.
Intel’s new products will make PCs run much faster and will also give its a stronger case in the server market. Some of the new chips are particularly good at running graphics, a market that AMD’s ATI unit has done well in over the years. The other company with a massive foothold in that industry is Nvidia (NASDAQ:NVDA).
All of the chip companies have been injured over the last six months based on the assumption that a slowdown in the economy will cut into Computer sales growth. But, Intel is off less than its rivals. Its stock is down less than 20% over the period while AMD and Nvidia are both off more than 40%.
Intel can weather a tough market. It has the balance sheet and gross margins to hold on and spend large sums on the R&D effort which is behind its newest products. AMD, carrying $5 billion in debt and with no profits, faces real problems keeping up.
Douglas A. McIntyre is an editor at 247wallst.com.
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