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If the news wasn't bad enough when Intel was forced on Monday to reshuffle its market-leading Xeon server processor line and its Itanium chip roadmap, it got worse Thursday for the chip leader when the latest market share numbers showed rival Advanced Micro Devices gaining additional ground in the third quarter.
AMD's share of the total x86 processor market grew to 17.6% in the third quarter, up from 16.2% in the second quarter, and 15.1% in the second quarter of 2004, according Mercury Research. Intel continues to control more than 80% of the market.
When counting only x86 processors used in servers, AMD saw its share grow to 12.7% in the third quarter, up from 11.2% in the second quarter, and up from about 5% in the second quarter of 2004.
Intel could see even more market erosion in the coming months, given the market momentum AMD is enjoying and the upheaval within Intel's processor portfolio, analysts say.
"Due to the cancellation of one of its flagship Xeon processors, we believe it could be difficult for Intel to recover its lost server market share until well into 2007," Chris Danely, an analyst with JPMorgan Chase, wrote in a report. "The product change calls into question Intel's ability to execute in the segment."
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