Intel Corporation (NASDAQ: INTC) and Advanced Micro Devices (NASDAQ: AMD) both operate in the semiconductor industry competing against each other in the microprocessor market. While Intel dominates this market, AMD remains its significant rival and is rapidly gaining market share.
In 2018, Intel announced the delay in volume release of CPUs based on its 10nm production process. Originally set for a late 2018 launch, supply issues have pushed this back to late 2019. Intel also announced it was putting its H310 chipset on hiatus as it couldn’t manufacture enough 14nm silicon to cope with demand. Due to these shortages, Intel dramatically increased the prices of its CPUs. This resulted in the CPU market share of Intel falling drastically in areas that were heavily hit by low supply and huge price hikes. Although this served its purpose of boosting profits, AMD was able to gain a huge chunk of unit market share from Intel.