Advanced Micro Devices (AMD) may be seeing a short-lived victory with it Ryzen processors, as the company is now predicted to lose its market shares later in the year due to Intel's advancements.
Intel's new 8th-generation Coffee Lake processor line has been gaining a good reputation, not only because they doubled or added 50 percent more cores to their processor units, but also because of their competitive pricing. Citi Research, a Wall Street firm, has predicted that AMD will lose as much as 60 percent of its market shares due to consumers now favoring Intel's new Coffee Lake chips. To make matters worse, the firm also stated that AMD will not be able to compete against Coffee Lake.
"Despite new products, AMD is still losing money we see no change in sight as it falls further behind the competition," said analyst Christopher Danely.
Benchmark reports for the AMD Ryzen line of processors were also not up to par with Intel's new processors, getting as much as a 20 percent performance gap, particularly in single-threaded operations like gaming, which requires more powerful individual cores, Intel's advantage against AMD.
Despite also predicting that AMD shares will increase by about 7.2 percent in the third quarter of 2017, this gain cannot be sustained by the central processing unit (CPU) manufacturer. Danely believes that AMD's upcoming contenders are not powerful enough to close the performance gap with Intel. In addition, Intel will again be increasing its performance lead over AMD with its future contenders.
It seems that the prediction from the Wall Street firm has not been far-fetched, as AMD's stock reports from Tuesday show a 12 percent drop in shares. This was in the after-hours trading. AMD's Chief Executive Officer (CEO) Lisa Su has told Fortune that "When I take a step back and I look at the progress, all of the revenue growth is really on the strength of the product portfolio. There's always a little of looking at what happens in one quarter versus the next, but if we take a step back, we see we're returning to very strong growth."
Intel's primary competitor in the CPU market remains optimistic despite the drop in shares as well as the predictions. It is still a long way to go before AMD releases its Ryzen refresh next year, and people have yet to see whether they can close the gap that Intel has made.
