03-28-2013, 04:06 AM
One of the problems I have always had with a company like Intel is that the No.1 position in the market changes every few years with its main competitor. In this case AMD, and this can effect the share price.
Intel are currently the market leader as the processors have about a 10% advantage on speed over AMD chips, but AMD are moving towards cheaper 8-core CPU's, so if they increase the speed by 5% then the price will per unit will make the other 5% irrelevant in the competition stakes.
However both these companies are starting to struggle as the ARM CPU is used in many smartphones and tablets, which is what people are buying and sales in PC's are dropping. Bot chip makers need to get decent mobile chips out to compete.
I wouldn't invest in either of these companies until the market clears up in a few years.
Intel are currently the market leader as the processors have about a 10% advantage on speed over AMD chips, but AMD are moving towards cheaper 8-core CPU's, so if they increase the speed by 5% then the price will per unit will make the other 5% irrelevant in the competition stakes.
However both these companies are starting to struggle as the ARM CPU is used in many smartphones and tablets, which is what people are buying and sales in PC's are dropping. Bot chip makers need to get decent mobile chips out to compete.
I wouldn't invest in either of these companies until the market clears up in a few years.