AMD vs. Intel: The Rivalry That Reshaped Modern Computing, CPUs, Gaming, and Data Centers

Since it was founded in 1968, Intel has dominated the chip market. For 25 years, it was the world's largest chip maker by revenue and is still America's biggest by sales. But then came AMD.

In 2022, the longtime rival took Intel’s top spot in market value, crossing a market cap of over $200 billion. It was the first time that ever happened. In part, this recent achievement can be traced back to one risky and expensive decision AMD made that changed the game not just for the company, but for computing in general.

So, how did AMD finally catch up to Intel?

The Early Days of AMD

July 1968, Silicon Valley. A small group of engineers founded Intel, a startup focused on chips—essentially the brains of a computer. Intel prioritized development early on and didn’t report any sales in its first six months. Meanwhile, just 10 months later and 20 minutes down the road, a former coworker of those engineers founded Advanced Micro Devices, or AMD.

AMD was making chips that Intel had already made, focusing more on keeping up than getting ahead. In 1970, Intel came out with the first semiconductor memory chip. A year later, it was the best-selling semiconductor device in the world. AMD’s hardware didn’t sell the same way.

AMD really came up as kind of an Intel copycat—making alternatives to Intel chips that were maybe a little cheaper. They were usually second place, especially when it came to CPUs and the rise of microprocessors.

CPUs are central processing units, chips that solve problems. A CPU has a flat piece of silicon with pathways of transistors turning currents on and off, making up binary code. That code goes into a core, which takes in problems and returns answers.

In 1971, Intel released the first programmable microprocessor, another success. By 1997, Intel chips powered 84% of the world’s computers. It had ten times AMD’s sales and six times its manufacturing capacity.

AMD's Transformation Begins

By the early 2000s, AMD was lagging. In 2014, AMD brought in Lisa Su as CEO. She began working on a new chip architecture called Zen.

AMD released a new design with chiplets—smaller chips working together as one CPU. This design offered better cost, power efficiency, and high performance.

This was the birth of Ryzen, AMD’s major comeback. By 2018, AMD’s market cap had jumped to over $30 billion.

The Bigger Picture – Data Centers and Gaming

Genoa is AMD’s latest data center CPU, with 13 chips in one package. AMD now powers Tesla, Mars rovers, 5G towers, and supercomputers.

Only AMD designs both CPUs and GPUs at scale. Though still behind Intel in CPU share and Nvidia in GPU dominance, AMD’s position is growing stronger.

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A Decade of Turnaround

Founded by Jerry Sanders in 1969, AMD reverse-engineered Intel chips in the 1980s to make them x86-compatible. In 1995, AMD won a landmark lawsuit affirming its right to design x86 CPUs.

They made the first 1-GHz processor, and later the 1-teraflop GPU.

Lisa Su’s Impact

Su turned AMD into a powerhouse. Under her leadership, AMD went from 8,000 to 25,000+ employees. She was Fortune’s #2 Businessperson of the Year (2020) and serves on President Biden’s science advisory board.

She helped push through the CHIPS Act, encouraging domestic chip production.

Manufacturing Evolution

AMD used to have fabs but now outsources manufacturing to TSMC. This allows for lower capital investment and faster scaling.

TSMC makes 90% of the world’s advanced chips, including AMD’s. The EUV technology used is vital for modern transistor design.

Key Acquisitions and Strategy

In 2022, AMD bought Xilinx for $49 billion—bringing FPGAs into the fold. It also acquired Pensando for $1.9 billion to support custom chip solutions for big tech.

AMD wants to support companies designing their own processors (like Amazon Graviton, Google Tensor, etc.) by offering customizable chip components.

Dominance in Gaming

AMD designs 83% of console processors. While Intel leads in CPUs and Nvidia in GPUs, AMD dominates gaming hardware.

Products like the Ryzen X3D series show AMD’s commitment to gaming performance with large cache memory and efficient power use.

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Ongoing Challenges

Post-pandemic, PC demand dropped. In 2022, Q3 PC shipments declined by 20%. There’s also concern about TSMC dependency amid China–Taiwan tensions.

Still, AMD remains confident. Lisa Su says it’s about big bets and building technology that nobody else can.

Frequently Asked Questions (FAQ)

What is AMD known for?

AMD (Advanced Micro Devices) is known for designing high-performance CPUs, GPUs, and custom chips used in PCs, data centers, gaming consoles, and enterprise environments. AMD’s Ryzen, EPYC, and Radeon product lines are widely recognized.

Who is Lisa Su?

Lisa Su is the CEO of AMD, appointed in 2014. She is credited with AMD’s turnaround and resurgence in the chip market. Under her leadership, AMD launched the Zen architecture, expanded into data centers, and acquired companies like Xilinx and Pensando.

How did AMD overtake Intel?

AMD overtook Intel in market value in 2022 due to innovations like Zen architecture, chiplet design, and competitive pricing. While Intel focused on single-chip CPUs, AMD embraced multi-chip modules, offering better performance per dollar.

What are AMD’s major products?

AMD’s major product lines include:

• Ryzen CPUs for consumers and gamers

• EPYC CPUs for data centers

• Radeon GPUs for gaming and creative professionals

• FPGAs through Xilinx for embedded computing

Conclusion

AMD’s rise from a second-source chip supplier to a semiconductor powerhouse is one of the most remarkable tech comebacks. With strategic decisions, product innovations, and leadership under Lisa Su, AMD is shaping the future of high-performance computing.

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