PC chipmaker Intel’s earnings during Q3 2020 reflected the tumultuous conditions of the world economy and increasing competition. According to the research data analyzed and gathered by ComprarAcciones.com, the company saw a revenue drop of 4% year-over-year (YoY) to $18.3 billion in Q3 2020. In contrast, the company had reported a 20% revenue increase in Q2 2020.

Based on the data from the Steam Hardware and Software Survey, Intel saw its market share drop by 3.3%, from 77.54% in May 2020 to 74.24% in September 2020. During the same period, AMD’s share increased by 3.3%, from 22.45% in May to 25.75% in September.

Intel’s Net Income Declined by 29% YoY in Q3 2020 vs. AMD’s 225% YoY Gain

Intel’s weak performance was to some extent driven by weak its data-centric business revenue which dropped by 10%.

The company’s Data Center Group (DCG) generated $5.91 billion, a 7% drop YoY, and lower than the $6.21 billion that FactSet analysts estimated. Its cloud revenue was among the few good performers in the segment, with revenue up by 15% YoY. However, DCG’s Enterprise & Government segment declined by 47% YoY. Notably, for two consecutive quarters prior to this, it had grown by 30%.

Intel’s operating income dropped by 22% YoY to $5.1 billion as net income sank by 29% YoY to $4.3 billion.

In July, Intel announced the delay of its 7nm chips to 2022, mentioning the possibility of outsourcing part of the manufacturing process.

On the other hand, AMD already rolled out its Ryzen 7nm chips. According to Mercury Research, Ryzen CPUs enabled AMD in Q2 2020 to win back the highest market share it has had since Q4 2013. Its overall x86 CPU market share was 18.3% in Q2 2020.

Moreover, in Q3 2020, AMD had a 37.3% share of the x86 CPU market against Intel’s 62.6%. AMD revenue in Q3 2020 shot up by 56% YoY to $2.8 billion as its net income skyrocketed by 225% YoY to $390 million.