Intel (INTC) And AMD (AMD) Both Claim Next Few Quarters Will Be Good

AMD (AMD) believes that its market share will begin to pick up in the second half. "Sometime in 2007 you’ll see us resume a more robust market share. You’ll see us rebound for sure," Henri Richard, executive vice president and chief sales and marketing officer, told Reuters at Computex, the world’s second-largest computer show. Intel (INTC) now has about 80% of the global PC processor market.

The market has tended to be skeptical about AMD claims. Due to poor revenue performance and shrinking gross margins, AMD’s shares are off 50% over the last year.

Intel is also saying that its newest product will help it improve sales. It is introducing its new 3-series chipset. "These chipsets will be the basis for most of the PC industry for the next 18 to 24 months,"  the company said. According to Reuters: "Intel is introducing the chipset family as it regains ground lost over the last two years to smaller rival Advanced Micro Devices Inc."

Because the two companies represent virtually 100% of the processor market for PCs it would be hard for both companies to be right.

Unless, of course, the market is larger than 100%.

Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.