AMD is paying off debt and reinvesting back into the company to grow and become more competitive. Intel is in a very different spot, they haven't had large debts (comparatively) to pay down and aren't exactly a growth company in their core business. If you look at revenue, AMD is sitting closer to 10% of Intel's total revenue. But, they obviously don't compete in a lot of markets. AMD lumps graphics cards and CPUs into the same category and semi-custom gets lumped in with enterprise so it's tough to know what the revenues are where they compete with Intel.Thanks!
But what does marketshare have to do with profit?
I said that taking in under 2% of the net income in the x86 market, was not enough to have a competitive AMD long-term.
However, in 1Q, AMD said that semi-custom revenue was negligible and that enterprise GPU was in a lull, so if we take the 1Q AMD enterprise vs Intel DC numbers, AMD had closer to 5% revenue share. Servers is also AMD's most lagging category in terms of adoption so desktop, HEDT, and laptops should all be significantly higher revenue share. AMD's and Intel's GM are also starting to get closer than I think Intel should be comfortable with considering the massive amounts they have to spend on R&D for their fabs.
Long story short, AMD is built to run lean and is experiencing significant revenue growth which it is steadily using to pay off debt and reinvest into itself. Intel will feel a lot of pain as AMD continues to not only take market share, but also force Intel to sell chips for lower GM than they've gotten used to over the last 10 - 15 years. Considering Intel's process problems now extend to 7 nm, it's going to be at least 3 years before they can stop the bleeding, if even by then. This is going to force Intel to have a major shakeup sooner or later, if they don't, it's going to be a slow painful death. IF they can get 7 nm out by early 2023 and in high volume with good yields, it probably won't be all that painful, but given their recent track record, that's a big if.
Luckily for Intel, there has been an unexpected surge in home PC and server demand due to COVID and AMD's inability to ramp quickly to meet demand due to TSMC being booked. AMD will be ramping soon with Apple and others moving to 5 nm and TSMC continuing to expand capacity so this won't be a saving grace for Intel much longer and who knows what will happen to all this demand once we start to move into a post COVID world, whenever that happens. One thing's for sure, after years of boring Intel dominance in all non-mobile CPUs, things have gotten a lot more interesting the last couple of years.