The Underdog Challenging Intel’s Dominance

Advanced Micro Devices (AMD) is a leading producer of x86-compatible processors and graphics chips. Founded in 1969, AMD has long competed with Intel as a maker of PC processors and platforms. However, Intel dominated the chip market for decades with its superior manufacturing technology, larger research budget and closer ties to Microsoft’s Windows ecosystem. AMD struggled for much of that time as a discount alternative for budget PCs and emerging markets.
In the early 2000s, AMD launched the Athlon 64 processor, the first x86 CPU to implement 64-bit extensions to the x86 instruction set. The Athlon 64 delivered performance to rival Intel’s Pentium 4 chips at lower prices. AMD gained market share, especially among PC enthusiasts and gamers seeking maximum performance per dollar. But manufacturing issues, lack of OEM support and Intel’s aggressive response held AMD back from wider mainstream adoption.
In 2006, AMD acquired graphics chipmaker ATI Technologies to boost its platform offerings. AMD integrated its new acquisition’s technology into Accelerated Processing Units (APUs) that combined both CPU and GPU onto a single chip. APUs lowered costs and power draw for basic PC graphics, video and casual gaming. AMD also continued advancing its CPU architecture with the Phenom, Bulldozer and Piledriver processor lines. However, Intel maintained a sizable technology lead and outspent AMD to gain preference among top OEM partners like Dell and HP.
By 2017, AMD had largely stabilized itself under the leadership of CEO Lisa Su. AMD pursued a strategy of prioritizing limited resources on high-growth, high-margin markets where its products could gain real traction. The company invested in building 7nm chips, a major manufacturing advantage over Intel. AMD also focused on producing powerful but affordable processors for gaming PCs, laptops and the server market.
In 2019, AMD launched 7nm Ryzen desktop processors that delivered substantially better performance per watt than Intel’s latest 14nm offerings. The third-generation Ryzen chips provided 8 to 16 CPU cores, significant IPC improvements and motherboard upgradability. They earned excellent reviews and helped AMD achieve its highest desktop market share in over 12 years. In 2020, AMD released 7nm Ryzen 4000 laptop processors, 7nm EPYC server chips and next-generation graphics cards based on the RDNA2 architecture.
Today, AMD is poised to gain further ground with upcoming releases of its new processor families for desktops, laptops and servers. AMD will also supply customized chips for the next Sony and Microsoft gaming consoles launching in 2020. In addition, AMD continues enhancing its graphics technology and plans to release high-end discrete GPUs to challenge rival NVIDIA. Overall, AMD has momentum in many of its key businesses that could translate into continued revenue and profit growth over the next several years.
Once viewed as a perennial underdog, AMD has revitalized itself through strategic focus, technological innovation and a relentless drive to deliver more performance for less money. By leveraging its advanced chip designs and manufacturing to target high-growth markets, AMD is now raising the bar on competition and changing industry dynamics that long seemed set in stone. Although still facing an uphill battle, AMD appears determined to keep challenging Intel’s dominance rather than remaining confined to niche segments—a prospect that promises more choice and better value for customers across the PC ecosystem and beyond.