Unit sales didn’t grow much, indicating sluggish market share
growth. Low visibility around EYPC sales indicates full-fledged server
deployment needs time. Nonetheless, bull thesis remains intact as AMD is
maintaining node parity.
Although sluggish unit sales growth and lack of visibility around
EPYC sales are challenging, these headwinds are short term. Market share will
gradually shift toward AMD as the company continues to offer comparable
products. Ryzen’s full potential is yet to be seen as mobile processors just
came out this month. Slow uptake in enterprise is natural, and share will
improve substantially going forward.
AMD
has successfully closed the technology gap. It’s only a matter of time before
the company gains decent market share. Having two players in the market is
better for both consumer oriented suppliers and data center service providers.
It all comes down to the fact that AMD’s market cap is just around 4% of
Intel’s market cap. Even a small dent in Intel’s market share will boost AMD’s
market capitalization. Now, think about AMD taking more than 20% of Intel’s
market share and you will know that it’s still a bargain.
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