Optimistic investors are confident that the return of Intel’s technological leadership will allow the company to stop the expansion of competing AMD. Representatives of the investment bank Raymond James are not ready to agree with this forecast, which does not prevent them from considering Intel shares ready for further growth at rates comparable to the entire market. But specific figures are not announced.
First, analyst Christopher Caso admits that even before 2025, by which Intel expects to regain its technological leadership, the company, along with the entire industry, may face a decline in demand. Secondly, the return of Intel’s leadership in the field of lithography does not guarantee that AMD will begin to lose ground. The latter has a reliable partner in the person of TSMC, with whom it has been successfully interacting over the past years, and while Intel will invest heavily in eliminating its backlog, AMD will acquire a sufficient number of loyal customers.
At the same time, Intel may have some advantage in managing its own costs, because it is known that TSMC is forced to raise prices for its services, and AMD depends heavily on it in pricing its own products. On the other hand, Intel is also not interested in outright dumping, and if a competitor raises prices, the processor giant will focus on it, which will contribute to faster growth in Intel’s revenue. Given the need to increase costs, such a step would also be justified. Over time, according to Raymond James, the CPU market will become more of a classic duopoly as AMD’s position strengthens.
source: Seeking Alpha