AMD Claws Back

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AMD (AMD) did the unexpected. It added market share during Q2. AMD gained 2.5 percentage points of the worldwide microprocessor market last quarter, iSuppli Corp told Reuters.

AMD’s gain, made amid declines in average selling prices, was due to increased shipments of microprocessors for notebook and desktop PCs and server computers used by businesses.

iSuppli voiced one word of caution. The price war between AMD and Intel (INTC), which lost the share that its smaller rival gained, is still in full swing. In other words, gross margins are bad.

Douglas A. McIntyre