Intel Corp (INTC)

[chipguy]

Is Advanced Micro Devices Bankruptcy Imminent?

http://www.investopedia.com/articles/markets/081415/advanced-micro-devices-bankruptcy-imminent.asp?partner=YahooSA

The financial struggles AMD is suffering are largely due to the fact that its semi-custom solutions market has been played out. AMD continues to fall further behind its primary competitors, Intel (INTC) and Nvidia (NVDA). AMD used to be a major participant in providing PC processors, but Intel has long since surpassed it. Intel's continuously increasing market share has allowed it to steadily generate greater revenues and profit margins. This has also allowed Intel to boost research and development (R&D), significantly outspending what AMD is able to expend. As of 2015, Intel's R&D expenditures exceed AMD's revenues.

AMD does not fare much better in terms of its position against its other major competitor. In the graphic cards market, AMD's market share has fallen by more than 40% over the last several years. Nvidia, conversely, has continued its prominent position in the industry. The biggest obstacle for AMD in this situation, and with it, Intel, is that its declining revenues, massive debt, and lack of cash have rendered it virtually unable to compete. AMD is attempting to divide its efforts between competing with Intel over the processor market and Nvidia in the graphics market, while Nvidia directs 100% of its resources to developing better graphics technology.