If you have been watching Intel’s path in recent years, you know the company is facing serious hurdles as it tries to reinvent itself. Under new leadership, Intel has trimmed its workforce and spun off parts of its business to focus on its core strengths like artificial intelligence and chips for computers.
While this big reset could spark a turnaround, the road ahead looks long and tough. In contrast, AMD and TSMC are moving fast and smart, making a case for why investors might want to look beyond Intel. AMD has shown just how quickly a nimble, focused company can take advantage of changing tech trends. Once a distant competitor, AMD is now taking market share directly from Intel in the core PC business.
It has done this by becoming more agile and making smart moves like shedding manufacturing operations to become a pure designer and climbing up as a top candidate in graphics chips for AI. In the last quarter, AMD posted big revenue gains in both data centers and consumer computers, riding the AI wave. Its ability to innovate and capture growth spots has put it in a leading position in today’s market.
Meanwhile, TSMC sits at the center of the global chip industry. It is not just bigger than Intel in manufacturing it dominates, making more than half the world’s contract chips and handling nearly all of the most advanced production. Even Intel has depended on TSMC to supply their own high-tech chips.
The profits and margins of TSMC are surging yet again thanks to its close relationship with other tech giants Nvidia and Apple. Its dominant position in the realm of manufacturing high-end chips places it in the ideal position to capitalize as the number of AI chips demand skyrockets. The TSMC will continue to be a force in the coming years due to good pricing of the dominance and rapid growth rates.
The combination of AMD and TSMC stands as testimony that innovation and response to the changes is worth its cost. Intel is putting its best efforts into gaining momentum once again, but investors expecting improved performance too soon may discover that AMD and TSMC turn out to be more secure bets at the moment.
