AMD Revenue Catches Up to Intel as AI Chip Demand Shifts

Advanced Micro Devices and Intel have traced sharply divergent paths over the past two years as artificial intelligence demand has reshaped the semiconductor market. AMD reported revenues of $5.8 billion（約9300億円） in Q2 2024 (ended June 2024), which steadily expanded to $10.3 billion（約1.6兆円） by Q1 2026 (ended March 28, 2026). Intel's revenue, by contrast, has remained largely flat, declining from $12.8 billion（約2兆円） in Q2 2024 to $13.6 billion（約2.2兆円） in Q1 2026. The body's explanation centers on a critical industry shift: graphics processing units became a key component for the artificial intelligence sector. AMD, which had built a reputation for high-end GPUs in video gaming, was well-positioned to capture this demand, while Intel—historically dominant in personal computing through its central processing units—missed the GPU opportunity and struggled to compete in AI infrastructure. For the quarter ended March 28, 2026, the profitability gap between the two companies is striking. AMD reported a 14% net income margin, while Intel posted a -28% net income margin, indicating that Intel is unprofitable even as it generates more absolute revenue than AMD. This margin deterioration reflects Intel's ongoing challenges in the AI transition. Intel's new CEO Lip-Bu Tan is attempting to reverse the company's trajectory through a $5.7 billion（約9100億円） capital investment to expand the company's manufacturing campus in Ireland and through new partnerships, including a multi-year collaboration with Google parent Alphabet on semiconductor foundry services. The company reported a 7% year-over-year revenue increase for Q1 2026 and provided guidance for Q2 2026 of between $13.8 billion（約2.2兆円） and $14.8 billion（約2.4兆円）, signaling modest optimism about stabilization. AMD, meanwhile, announced an expanded partnership with Microsoft on July 20, underscoring its deepening relationships with the cloud and AI infrastructure providers driving semiconductor demand. The market's confidence in each company's prospects diverges sharply: AMD's stock trades above $500 per share as of July 20, while Intel's has fallen below $100, a reflection of Wall Street's view that AMD's AI momentum is more sustainable than Intel's recovery efforts.

AMD and Intel's diverging fortunes reflect a fundamental shift in semiconductor demand driven by artificial intelligence adoption. AMD's steady revenue growth from $5.8 billion（約9300億円） to $10.3 billion（約1.6兆円） over roughly two years mirrors the market's shift toward GPUs, which became essential infrastructure for AI systems. The body notes that AMD, historically known for consumer graphics processors, capitalized on this transition, while Intel's focus on traditional central processing units and its late entry into the GPU market cost it dearly. The profitability gap is stark: AMD's 14% net income margin versus Intel's -28% margin for Q1 2026 shows that AMD is not just catching up on volume but also converting that volume into shareholder value far more efficiently. Intel's new CEO Lip-Bu Tan is attempting to engineer a comeback through manufacturing expansion and foundry partnerships—notably a multi-year collaboration with Alphabet—and the company is signaling confidence through a 7% year-over-year revenue increase and guidance for Q2 2026 between $13.8 billion（約2.2兆円） and $14.8 billion（約2.4兆円）. However, the stock market's verdict is unambiguous: AMD trades above $500 per share as of July 20 while Intel has fallen below $100, reflecting Wall Street's assessment that AMD's AI momentum is more durable than Intel's turnaround promise.

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