Intel's Raptor Lake Is a Big Problem for AMD
Advanced Micro Devices (NASDAQ: AMD) has made a stunning comeback over the past five years. Through multiple generations of Ryzen PC CPUs, the company has steadily gained market share from Intel (NASDAQ: INTC) while growing revenue and profit considerably. Even after being pummeled this year, AMD stock is up nearly 400% over the past five years.
AMD is now facing two major problems. The first is largely out of its control: Demand for PCs is plunging, leading to inventory corrections across the supply chain. AMD now expects its organic revenue to essentially flatline in the third quarter.
The second problem is Intel's new Raptor Lake CPUs. With Intel boosting core counts and pricing aggressively, AMD's latest Ryzen CPUs are simply overpriced. In a tough PC market, that's not going to go well.
Source Fool.com
