DOW JONES NEWSWIRES
Intel Corp. (INTC) has expanded its lead in the global
microprocessor market to the highest level in almost four years,
according to iSuppli Corp.
In the second quarter, Intel received 81% of global
microprocessor revenue, up from 79% a year earlier. That was the
chip giant's largest share since the third quarter of 2005, when it
had 82%, according to the research firm. In the first quarter of
this year, Intel also held 79% of the market.
Intel benefited as the global personal-computer market began to
recover, said iSuppli analyst Matthew Wilkins. Both it and rival
Advanced Micro Devices Inc. (AMD) posted lower microprocessor
revenue than a year earlier because of a decline in PC
shipments.
AMD's share of global microprocessor revenue fell 0.4 percentage
point from a year earlier to 12% in the second quarter. In the
first quarter, it had 13% of the market.
AMD didn't benefit from the small sequential rise in PC sales
because its average microprocessor pricing was lower than the first
quarter, Wilkins said.
ISuppli said Intel saw strong demand for its new-generation
products in all segments, including desktops, notebooks and
servers, but only the notebook segment showed growth from a year
earlier, at 13%. Both the desktop PC and entry-level server
segments declined from a year earlier.
Late last month, Intel boosted its third-quarter sales forecast,
citing stronger than expected demand for its microprocessors in a
surprise update of its guidance in July. That new forecast came as
other tech bellwethers began offering signs that the market is
stabilizing after several quarters of sharp drops in demand. Last
week, Texas Instruments Inc. (TXN) also raised its third-quarter
forecast.
Intel's shares recently traded at $19.35, down 0.8%, while AMD
was flat at $5.68. Intel's stock is up 32% this year while AMD has
more than doubled. Both are little changed from a year earlier.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
Kathy.Shwiff@dowjones.com