AMD gained control of over 25% of the microprocessor market for the first time ever in Q4, according to preliminary data from Mercury Research. Its 25.3% share is a 2% quarter-over-quarter increase. Intel's share slipped to 74.4% from 76% -- its lowest share in over a decade. In the servers segment however, Intel added 1.4% to increase its share to 77.7%, while AMD fell by the same amount to 22.3%. Intel looks poised to take more market share based on a recent deal announced with Sun Microsystems. Note the much talked about price war between the duopoly is obvious when looking at AMD's gains in desktop and notebook PC market share, compared to its Q4 margin to sales which dropped to 40%, from 57% last Q4. AMD gained 2.5% in the desktop segment to 29.1%, versus Intel's 2% fall to 70.4%. In the notebook segment AMD increased its share by 2.6%, to 19.4%, compared to Intel's decline by the same amount to 80.6%.
Sources: MarketWatch, Reuters
Commentary: AMD, Intel Price War Revisited • Intel, IBM Take Moore's Law to the Next Level • Sun Set to Announce Deal to Use Intel Chips in Servers
Stocks/ETFs to watch: Advanced Micro Devices (NASDAQ:AMD), Intel (NASDAQ:INTC). ETFs: Semiconductor HOLDRs (NYSEARCA:SMH), iShares Goldman Sachs Semiconductor (IGW), SPDR Semiconductor (NYSEARCA:XSD), Technology Select Sector SPDR (NYSEARCA:XLK)
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