Popular Technology Stock to Avoid – Intel

  Popular Technology Stock to Avoid – Intel As Intel Loses Its Market Share To AMD, It Could See Worse Days! Introducing the world's first microprocessor in 1971, Intel INTC (NASDAQ) $57,38 +0,38 (+%0,67) has over time become a leader in manufacturing central processing units for laptops, desktops, and data center servers (CPUs). Later, the company began to make its presence felt in the 1980s, when the x86 chip architecture became the industry standard. Today, Intel underperformed in the S&P 500 due to its manufacturing challenges and various corporate moves. Things could get worse for the next ten years!

Intel Investors Need to Know

Personal Computer Problems

Intel computer scientist Gordon Moore said in 1965 that the number of components on the chip would double every year. And this increase has come to be known today as Moore's Law. For decades, Intel has kept that pace, releasing smaller and more powerful chips every two years. However, it was able to launch the 10 nm mobile processor, which it will launch in 2015, in 2019 with a delay of 4 years. Meanwhile, Taiwan Semiconductor Manufacturing Company (TSMC) had started rolling out 10nm chips in 2017 and 7nm chips in 2019. This operation allowed its partner AMD AMD (NASDAQ) $81,56 +1,60 (+%2,00) to launch 7nm mobile processors in 2020.

As A Result, Intel Lost Its Market Share!

Although Intel launched 10nm mobile chips in 2019, it failed to offer the desktop version chip. In contrast, rival AMD had already launched its 7nm desktop processor in 2019!

Thus, Intel Continued to Lose Its Market Share Again!

Specifically, the 5nm Apple M1 chips produced by TSMC outperform Intel's 3.5nm chip.

As Intel Loses Its Market Share To AMD, It Could See Worse Days!

And This Highlights 2 Big Problems!

- Intel is losing a big customer like Apple! AAPL (NASDAQ) $126,11 -1,02 (-%0,80) - We know that one in three developers use a Mac, which means Intel will lose a large portion of its developer base.

Data Center Issues

In 2021, Intel finally delivered its 10nm CPU, thanks to Pat Gelsinger replacing former CEO Bob Swan. In 2018, Amazon started producing its own ARM-based Graviton processors for data centers. It has been shown to outperform compute instances powered by x86 chips. This means another blow to Intel!

Bigger Problems on the Horizon!

To summarize, AMD is gaining market share and big tech companies are starting to switch to ARM technology. In the end, Intel is losing on both fronts! In other words, Intel's market share losses could accelerate further in the next decade. However, it should not be forgotten that everything can change rapidly in this dynamic market.    

Source: The Motley Fool

 

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