<div id="readability-page-1"><div> <p>Friday morning displayed two different trends for chip manufacturers. Intel investors lost over 10% in their stock value, while Advanced Micro Devices shareholders received unexpected benefits, as the stock increased approximately 3.8% during the mid-morning period.</p> <p>The two companies share identical industry conditions and both operate under the same economic climate, yet their market reactions show complete divergence. Intel provided its explanation through the statements they made after disclosing its initial positive financial results.</p> <h2>Intel Trips over its Guidance</h2> <p>Intel delivered positive financial results, but it failed to meet its own future projections. Intel’s financial performance evaluation showed strong results. The company generated $13.7 billion in revenue, which exceeded forecasts by $300 million, while its adjusted earnings per share reached $0.15 that is double the amount of what Wall Street expected.</p> <p>However, the celebration stopped when the management began to examine future business developments. Intel predicted a difficult upcoming quarter because its Q1 2026 revenue would probably drop to $11.7 billion, which fell short of both previous quarter results and analyst predictions.</p> <p>The company expected to reach breakeven barely, which will result in missing its financial targets again. Investors sold their shares after Intel delivered future guidance, which created more uncertainty about the company’s future performance.</p> <h2>How Did AMD Gain?</h2> <p>This marks the moment when AMD establishes its presence. Intel disclosed that supply shortages will increase during its upcoming months, and CFO David Zinsner mentioned Q1 as the period of lowest supply levels before Q2 shows any sort of improvement. Intel’s weakened supply chain system creates disadvantages for the company and simultaneously changes competitive dynamics.</p> <p>As the demand for AI and data center chips rises, its limited supply means that the customers will look for alternative solutions, which ultimately results in price increases. For AMD, that situation represents a typical situation, where the customers will accept the offer.</p> <p>The situation creates a perfect opportunity for AMD to proceed with their plans. Also, tighter supply across the industry often translates into stronger margins for competitors that can actually deliver chips on time.</p> <h2>AMD is More Appealing</h2> <p>The AMD stock market price exists beyond the range of budget investment options. The stock trades at approximately 133 times earnings, which is not exactly cheap and it indicates that investors expect positive future performance.</p> <p>Intel’s warning about its performance creates advantages for AMD in the short term. AMD will gain from the increased market share and stronger pricing control if the AI demand will exceed Intel’s ability to supply products. So, basically the disappointing results from Intel created such an unintentional campaign that unexpectedly benefited AMD.</p> <h2>Bottom Line</h2> <p>Intel’s guidance failure showed that the company continued to deal with production challenges, which led investors to choose AMD as their preferred investment option. Investors now see AMD as a more reliable investment option because they compare it to Intel, which currently struggles with supply chain problems and operational difficulties.</p> <p>So, sometimes the most beneficial information about a stock actually comes from its main competitor’s public statements rather than the stocks own announcements.</p> </div></div>

On October 26th, after the U.S. stock market closed, chip giant Intel released its Q3 2023 financial report. The report showed that Intel's total revenue in the third quarter fell 8% year-on-year to $14.16 billion, marking the seventh consecutive quarter of declining sales, although it was still higher than the market expectation of $13.53 billion. In the second quarter, revenue had previously dropped 15% year-on-year, and the company expects revenue to return to growth in the fourth quarter. However, the sales of the Network and Edge Group (NEX), which includes IoT and other segments, fell 32% year-on-year to $1.5 billion. More importantly, the server chip division, named "Data Center and Artificial Intelligence," has yet to recover growth, with third-quarter revenue declining 10% year-on-year to $3.8 billion. Facing multiple competitive pressures, do you think Intel can turn the tide in the AI era?

<p><span style="background-color:rgb(255,255,255);color:rgba(0,0,0,0.9);">On October 26th, after the U.S. stock market closed, chip giant Intel released its Q3 2023 financial report. The report showed that Intel's total revenue in the third quarter fell 8% year-on-year to $14.16 billion, marking the seventh consecutive quarter of declining sales, although it was still higher than the market expectation of $13.53 billion. In the second quarter, revenue had previously dropped 15% year-on-year, and the company expects revenue to return to growth in the fourth quarter.</span></p><p> </p><p style="margin-left:0px;"><span style="background-color:rgb(255,255,255);color:rgba(0,0,0,0.9);">However, the sales of the Network and Edge Group (NEX), which includes IoT and other segments, fell 32% year-on-year to $1.5 billion.</span> More importantly, the server chip division, named "Data Center and Artificial Intelligence," has yet to recover growth<span style="background-color:rgb(255,255,255);color:rgba(0,0,0,0.9);">, with third-quarter revenue declining 10% year-on-year to $3.8 billion.</span></p><p style="margin-left:0px;"> </p><p style="margin-left:0px;"><span style="background-color:rgb(255,255,255);color:rgba(0,0,0,0.9);">Facing multiple competitive pressures, do you think Intel can turn the tide in the AI era?</span></p>

In the AI era, can Intel win a comeback?

<p>Intel's stock plummeted over 10% after failing to meet future projections despite reporting strong financial results, while AMD's stock rose approximately 3.8%. Intel's guidance indicated a challenging Q1 2026 with expected revenue dropping to $11.7 billion, raising concerns among investors. In contrast, AMD stands to benefit from Intel's supply chain issues, as demand for AI and data center chips increases. This situation positions AMD as a more appealing investment option, highlighting how Intel's struggles inadvertently create opportunities for its competitor.</p>

- On Friday, Intel's stock fell over 10% due to disappointing future guidance, while AMD's stock rose approximately 3.8%.  
- Intel reported strong financial results but predicted a revenue drop for Q1 2026, leading to investor uncertainty, whereas AMD is poised to benefit from Intel's supply chain challenges, potentially increasing its market share and pricing power.  
- The situation illustrates that competitive dynamics can shift significantly due to one company's struggles, making AMD a more attractive investment option in the current landscape.

How Intel’s Bad News Turned Into a Winning Situation for AMD?