Why does Advanced Micro Devices maintain Intel’s edge share? (NASDAQ: AMD)

AMD office in Markham, Ontario, Canada.

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For years, Intel (Nasdaq:INTC) was the leading player in the field of semiconductors, holding Significant advance over competitors such as Advanced Micro Devices (Nasdaq:AMD).

But with smartphones, data centers, and game consoles taking off, Intel (INTCfound itself losing market share to AMDAMDAnd it doesn’t look like the trends will stop anytime soon.

Bank of America analyst Vivek Arya, who has a price target of $160 per share on AMD (AMD), and a target price of $47 per share on Intel (INTC), note that AMD (AMD) is gaining market share in the high-end commercial segments of the laptop market, and has been able to drive up prices. As customers respond to AMD (AMD) products, the gap is now down to 5%, compared to between 20% and 30% during the fourth quarter of 2021, even though (Intel) (INTCAlder Lake product.

Arya said in a research note that strong pricing and execution helped AMD (AMD) raised its share of PC value to 20%, and unit share by 22% in the first quarter of 2022, “with value share reaching an all-time high”.

Semiconductors have been in short supply for more than two years, due to a number of factors, notably the COVID-19 pandemic, which has disrupted supply chains around the world.

chip equipment makers, such as ASML (ASML), You have Talk About the high demand supporting the space for years, making the fact that AMD (AMD) was able to increase its market share, even with the shortage, even more impressively.

And it’s not just the PC space where AMD (AMDMake big gains that could be hard for IntelINTC) to beat anytime soon, it is also the server market, which (INTC) depends on growth.

In the first quarter, Arya indicated that the sales and unit price of server chips was “strong” year-over-year, but there was some sequential decline for the first time in more than a year. Although some may be concerned that this is a sign of “data center peak demand,” when examining capital spending on the cloud, the server market is likely to remain healthy.

AMD (AMD) now holds 16.5% value and 11.6% unit share in the server market, up 5.7% and 2.7% year over year, respectively.

The company isn’t sitting on its laurels either, as next-generation server chips routinely outperform Intel’s offerings (INTC). The best example of this is the competition between Milan, the codename for AMD’s EPYC 7003 series of high-performance microprocessors, and Intel’s Ice Lake.

Milan takes more than 30% of the unit share compared to Intel Ice Lake, which Arya described as “interesting”, since there was such a disparity between the two companies previously.

In the long term, given the company’s pricing and ongoing associations with so-called hypererscalers, including recent deal with meta pads (FB), it is possible to be AMD (AMD) to 35% of the stock’s value, which could result in earnings of close to $8 per share by 2024, compared to current estimates of $6.54 per share.

Arya added that AMD (AMD) has gained unit share in the server market for 12 consecutive quarters, and its market share is now the highest in more than 10 years, with no signs of slowing apparently.

Assuming that the PC and server markets continue to grow at around 6% at a compound annual growth rate (CAGR) through 2024, it is likely that AMD (AMD) Arya explained that the combined market share and value are 26% and 26%, compared to 19% and 15% in 2021.

Earlier this week, Citi said that AMD (AMD) and intel (INTC) The weak PC market may be affected, as notebook shipments fell short of estimates for the fourth consecutive month.