Intel’s Latest Setback Should Please AMD Investors

Intel's (NASDAQ: INTC) stock plunged 16% on July 24 after it followed up its second-quarter earnings beat by disclosing that its new 7nm process is now "trending approximately 12 months" behind its internal target. As a result, Intel doesn't expect to launch its 7nm chips until 2022 and 2023. During the conference call, CEO Bob Swan blamed the delay on a "defect" that caused yield degradation issues and stated Intel would rely on "contingency plans" -- including the use of third-party foundries -- to get back on track.

That was a massive setback for Intel, which still hasn't fully resolved the ongoing chip shortage caused by its troubled development of 10nm chips. But it's great news for rival AMD (NASDAQ: AMD), which saw its shares surge nearly 17% after Intel's disastrous announcement.

Image source: Getty Images.

Source Fool.com