Rosenblatt Points Out How Intel's Price War Could Prove Costly For AMD

Rosenblatt analyst Hans Mosesmann shared salient articles in the last week specific to AI, Bandwidth, and Compute that are important and merely interesting regarding key secular themes.
He had some incoming this week on DigiTimes news that Intel Corp INTC was cutting Alder Lake desktop pricing to promote 2H22 demand that was weaker than expected.
Intel's Alder Lake is a 10nm+ based (Intel 7) CPU launched last year and currently trades blows with Advanced Micro Devices, Inc's AMD 7nm-based Zen3 Ryzen 5000 series.
AMD has maintained top-selling desktop CPU status since the beginning of the year, and using Amazon.com Inc's AMZN list, AMD has all top 5 selling CPUs and 7 of the top 10 in all ranges of price points.
The setup in 2H22 is a mid-September launch of AMD's new Zen 4 architecture and 5nm Taiwan Semiconductor Manufacturing Company Ltd TSM process technology, which he expected to compete with Intel's pristine Raptor Lake (using still 10nm+). He suspects continued share losses also impacted 2H22 demand over possible end demand weakness.
Raptor Lake will likely be considerable silicon die as Intel must match AMD's 32-thread defacto high-end standard.
So, he sees the profit profile on top of likely share losses as a dilemma that gets worse if Intel uses price to entice OEM uptake.
Price Action: INTC shares traded lower by 1.47% at $37.23 on the last check Wednesday.
Photo via Wikimedia Commons

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