Intel – CPU Roadmap Looking Good

Perhaps investors will pause for a moment from their ritualistic dead-horse-beating about the demise of Intel (INTC) and the ascendency of AMD (AMD). They should read a recent performance benchmarking from AnandTech, “Intel Woodcrest, AMD’s Opteron and Sun’s UltraSparc T1: Server CPU Shoot-out“.

It’s a great overview of the performance of Intel’s new Woodcrest Server chip, and how the Core architecture is improving the performance of their chips across the board. In my discussion of the New Four Horsemen, I also linked to an article comparing the Intel Core versus AMD’s K8 architecture.

Intel is not without troubles. But the idea that AMD is going to continue to take large share gains is absurd. AMD clearly took advantage of the horrific Xeon performance in the server space. Much of the Intel share loss and most of the profit hit was from losing this high margin business. Read the Anandtech articles and it’s clear to me that the days of easy share gain for AMD are over.

Add to the fact that one analyst is seeing the signatures of a nasty price-war developing and I think we are seeing what Andy Grove likes to call an inflection point.

Now they just need to fix their awful marketing.

The real loser here? Sun Microsystems (SUNW) and their build-their-own CPU strategy pulled from the playbook of virtually every computer company that went out of business in the last 20 years, something we pointed out six months ago.

In the semiconductor business, the clock re-starts every two years. You put yourself out of business or the other guy will. There is no permanant advantage. And the clock just restarted. Game on boys.