Advanced Micro Devices (NASDAQ: AMD) has been used in cryptocurrency mining for a long time. Back to normal levels and hurting AMD's finances.
The company's top and bottom lines are expected to drop slightly in the fourth quarter. For comparison, AMD's revenue had shot up 33% annually in the same period last year and it had posted a nice profit, versus a loss in the prior-year period. Intel 's (NASDAQ: INTC) [It's natural for AMD investors to be worried by this slowdown, but they should not forget it.] 1
AMD keeps chipping away at Intel's CPU dominance
Central processing units (CPUs) have turned out to be Intel's fiefdom so far. The chipmaker has dominated this market over the past few years, but AMD's Ryzen CPUs are changing that. AMD is going to exit 2018 on a high as well.
Mercury Research estimates that AMD's desktop CPU market share has increased to 13 % in the third quarter of 2018, up from 9.1% in the prior-year period. Chipzilla's CPUs by 2-to-1 in Europe.
Germany's largest online retailer of PC hardware, Mindfactory.de, recently revealed that it sold 16,000 AMD processors in November versus less than 8,000 Intel chips. AMD's CPU almost doubled on a year-over-year basis. Mindfactory.de had revealed in July that AMD Ryzen CPUs were selling at par with Intel's chips.
Mindfactory.de's numbers do not present the entire picture, but they are giving an idea about the momentum in the CPU market from Intel to AMD. AMD over Intel.
Turning up the heat in 2019
AMD's CPU market share growth has been steady so far, in 2019 thanks to new chip architecture. AMD wants to officially unveil its 7-nanometer CPUs based on its Zen 2 architecture at the CES 2019 electronics show in January in Las Vegas, giving it a head start over Intel, whose compn 10nm platform will not arrive until the end of next year.
Intel has already missed a few deadlines on its next gen architecture, and it's possible that its 10nm products will not arrive until 2020. This puts AMD at an advantage because a small manufacturing node will allow it to make more efficient CPUs With more computing power and greater efficiency in power consumption.
In 2020, AMD plans to optimize the 7nm architecture to further improve the efficiency of the Zen 2 platform. Intel comes to the marketplace with its competing chips. Zen 2 CPUs are available.
CPUs can help AMD turn around
According to a DigiTimes report, AMD could end 2018 with 30% of the global CPU market thanks to production delays at Intel and the favorable demand for AMD's Ryzen chips. That looks outlandish that the company did not even get it back in 2019.
AMD's overall sales are predicted to increase over 7 % in 2019 despite a forecast for revenue declines over the next two quarters. CPUs could help it offset the GPU's weakness and regain lost investor confidence by boosting revenue growth next year.
Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.