While AMD battles its stock price doldrums and feels the pinch of it’s acquisition of ATI, Intel posted record second quarter earnings of $9.5 billion, operating income of $2.3 billion, net income of $1.6 billion and earnings per share (EPS) of 28 cents.
"Intel had another strong quarter with revenue at the high end of expectations and earnings up substantially year over year," said Paul Otellini, Intel president and CEO. "As we enter the second half, demand remains strong for our microprocessor and chipset products in all segments and all parts of the globe."
This is great news for Intel, but serves to highlight AMD’s woes.
AMD’s disappointing Phenom launch and lackluster processor performance combined with Intel’s pressure on processor prices is a heavy rock around AMD’s neck. It’s important to note that AMD hasn’t been idle and has some pretty interesting things in stock. Not the least of which is the catching up with Nvidia in GPUs, but also their Spider platform, and next generation processor. There is no doubt the pressure is on. AMD needs to deliver a hit. They need it and we, the PC enthusiasts, need AMD. Without a serious competitor innovation can stagnate and prices are sure to rise.