Intel gaining market share, but AMD gains in server segment, Citi says
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Intel (NASDAQ:INTC) gained market share for microprocessor shipments in the fourth quarter, particularly in notebook and desktop PCs, Citi said, citing Mercury Research, but Advanced Micro Devices (NASDAQ:AMD) gained where it counts: in servers.
Analyst Christopher Danely, who has a neutral rating on both stocks and a $140 price target on AMD and $55 price target on Intel, respectively, said he expects PC orders to fall and there to be a "price war in microprocessors as post-pandemic normalcy fully returns."
Intel shares were up slightly more than 1% to $49.35 in premarket trading, while AMD tacked on nearly 2% to $130.54.
Digging deeper, Danley noted that Intel's overall market share increased 0.3% in the quarter to 82.9%. Breaking that down further, notebook share rose 0.4% to 79.1%, while desktop share rose 0.1% to 87.5%. However, it lost 0.6% worth of server share to 89.9% "due to a lack of competitive server products."
Danely explained that he believes PC shipments are likely to slow down after double-digit growth as a result of the pandemic.
"We remain worried the PC space will slow down after double-digit growth," the analyst stated. "We believe PC sales will cool off due to a reversion to the mean after two straight years of double-digit growth and could result in a microprocessor inventory correction."
Intel was listed as one of 25 stocks to hedge against long-only fund managers by Wells Fargo.