Intel Shares Under Pressure as AMD Gains Market Ground

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Intel Corporation finds itself navigating significant headwinds. The chipmaker's stock has declined 7.5% over a single week, a stark contrast to broader gains within the semiconductor sector. This downturn is primarily attributed to aggressive market share advances by its rival, Advanced Micro Devices (AMD), across nearly all key business segments. Concurrently, emerging details concerning Intel's next-generation processor family are raising investor concerns over potential costs and profitability.

Recent market share data from Mercury Research for the fourth quarter of 2025 underscores a sustained competitive shift. AMD is making systematic gains. In the desktop CPU segment, AMD's unit share reached 36.4%, while its revenue share climbed to 42.6%. The trend is even more pronounced in the high-margin server market, where AMD now accounts for 41.3% of total revenue—a new record for the company.

The financial contrast between the two firms is equally telling. For Q4 2025, AMD reported earnings per share of $0.92, representing a staggering 217% year-over-year increase. Intel, conversely, posted a loss of $0.12 per share. AMD's Data Center segment revenue grew by 39%, vastly outpacing the 9% growth seen in Intel's analogous division. Intel's Client Computing group, which includes PC chips, saw revenue contract by 7%.

Company leadership at Intel has acknowledged that supply constraints have hampered its ability to meet customer demand, a particular issue within its lucrative data center business.

The Nova Lake Challenge: Performance Versus Profitability

Looking ahead, Intel is preparing to launch its Nova Lake processor family by the end of 2026. The flagship model is expected to feature up to 16 performance cores, 32 efficiency cores, and include Intel's response to AMD's 3D V-Cache technology. However, industry reports suggest the top-tier variant could have a power consumption exceeding 700 watts. This prospect prompts serious questions about manufacturing expenses, cooling system requirements, and ultimately, product margins. These concerns emerge at a time when Intel is already grappling with profitability challenges.

Cautious Near-Term Guidance

Management's outlook for the first quarter of 2026 remains guarded, with Intel projecting only break-even results. Chief Financial Officer David Zinsner indicated that the supply chain issues are not expected to ease before the second quarter. Despite the recent share price weakness, Intel's stock remains in positive territory for the year, holding a gain of approximately 27% since January.

All eyes will be on the upcoming quarterly earnings report scheduled for April 23. This release will be a critical indicator of whether Intel can begin to reverse the current competitive trend against AMD or if the gap between the two chipmakers continues to widen.

@ boerse-global.de | US4581401001 INTEL