This week, we've got a classic semiconductor showdown: Advanced Micro Devices (AMD) versus the veteran, Intel Corporation (INTC). It’s the nimble challenger against the established giant, both fighting tooth and nail in the high-stakes world of chips.
🥊 This Week's Contenders
First up, AMD. Based out in Santa Clara, California, these guys design the brains for a lot of tech – think CPUs, GPUs, and those AI accelerators everyone's talking about. They don't own the factories (that's called 'fabless'), relying on partners like TSMC to build their designs. They power everything from gaming consoles and PCs to massive data centers. Recently, they bought Xilinx, adding more specialized chips (FPGAs) to their arsenal.
Lately, though, AMD's hit a few bumps. They're forecasting a hefty $800 million charge next year because of unsold AI chips, thanks to U.S. export rules hitting sales to China. This has analysts trimming their expectations. But AMD isn't standing still – they've got a big "Advancing AI" event coming up soon to showcase their next-gen tech. They're also starting to make some chips stateside at TSMC's new Arizona plant, which is a significant move for their supply chain. On top of that, regulators in the EU are taking a close look at their $5 billion deal to buy ZT Systems. So, plenty happening there.
Next, we have Intel. Also headquartered in Santa Clara, Intel is one of the old guards. They design and manufacture their chips – CPUs, graphics, network stuff, you name it. They're pushing hard on their "IDM 2.0" strategy, aiming to build chips not just for themselves but for other companies too, competing directly with the likes of TSMC.
Intel's recent numbers were a mixed bag. They slightly beat revenue expectations for the first quarter but still posted a net loss of over $800 million. Their forecast for the next quarter wasn't great either, falling short of what Wall Street wanted to see. This led to announcements of more job cuts and pulling back on spending plans. The stock took a hit, dropping significantly from its yearly high. There's a lot riding on their new CEO, Lip-Bu Tan, and their Foundry business. To refocus, they just agreed to sell a majority stake in their Altera unit (programmable chips) to Silver Lake. It’s clear Intel is in the middle of a major turnaround effort.
Two big players, both facing challenges and making strategic moves. Let's see how they stack up head-to-head in the numbers.