SWOT Analysis:
Intel Corporation:
Strengths:
 Established presence
 Brand value and customer
recognition
 Highest market share among the
competitors.
 Better R&D
 Better Cross-compatibility
Opportunities:
 Higher population are inclined
towards technology, so better sales.
 Pandemic has increased demand for
computers and digital devices.
 Other fields like mobile platforms,
IoT, Smart appliances, Autonomous
driving vehicles.
Weaknesses:
 Overproduction
 Diversity
 Decline of profits and market share
 Service and reach for support
Threats:
 Concentration on processor chips alone.
 Competitors like AMD, offering cheaper and
better products since the late early 2010s.
 The decline in price to value ratio over the
years.
AMD:

Strengths: Weaknesses:

 Performance oriented engineering,  Cannot compete with mobile processors in

including devices as well as
processors.
 Brand Awareness and loyal
community that support the brand.
 Innovation inclined towards
processing and graphic
development.
 R&D innovation processors over the
years to compete alongside of Intel.
 The only company competing with
NVIDIA in terms of Graphic Units.
 Better Service and Affordable
Products.
 Diversity in the products launching.
Opportunities:
terms of computing efficiency.
 Majorly non-existent in mobile device
industry though had been the torchbearer of
the smart phones.
 Bad stock cooling solutions provided by the
company.
 Relatively less market share when compared
to its competitor.
Threats:

 Can expand into the mobile market.  Competitors in the field of CPUs and GPUs
 New product line ups like IoT being Intel and NVIDIA, respectively.
devices as well as better supply for  Shortage of silicon around the world, resulting
existing gaming consoles like PS in price increase.
and Xbox.
 With its network, the company can
provide low cost CPUs and GPUs to
every section of the PC community.
 Customer trends preferring AMD
had been increasing over the years.
Ratio Analysis and Comparison:

Here are a few important ratios used to compare the performance and health of the
company:
1. Current Ratio
2. Debt-Capital Ratio
3. Debt-Equity Ratio
4. Gross Margin
5. Net Profit Margin
6. Return on Investment

Current Ratio:

Current Ratio
3

2.5

1.5

0.5

0
2017.5 2018 2018.5 2019 2019.5 2020 2020.5 2021 2021.5

Intel AMD

It shows that the Intel and AMD are competing head-on, and though Intel corporation is an
established organization, the CR of AMD corporation has shown a relatively higher increase
during the pandemic.
Debt-Capital Ratio:

Debt-Capital Ratio
0.5
0.45
0.4
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
2017.5 2018 2018.5 2019 2019.5 2020 2020.5 2021 2021.5

Intel AMD

It shows that the Debt-Capital Ratio is increasing in Intel unlike AMD, showing the company
is funding its revenue through debt risking its liability to repay them in the future whereas,
during the period between 2018-2020, the DC ratio of AMD has nearly halved showing the
company is streamlining its process of revenue inflow, decreasing its liabilities.
Debt-Equity Ratio:

Debt-Equity Ratio
1.2

0.8

0.6

0.4

0.2

0
2017.5 2018 2018.5 2019 2019.5 2020 2020.5 2021 2021.5

Intel AMD

The above graph shows that the funding AMD has chosen is from the shareholders of the
organization for debts and its reliance on debts for funding has increased overtime nearly by
4 times. The high D-E ratio shows that AMD is relying on shareholder’s equity for funding.
Gross Margin:

Gross Margin
70

60

50

40

30

20

10

0
2017.5 2018 2018.5 2019 2019.5 2020 2020.5 2021 2021.5

Intel AMD

The above graph shows that the gross margin has been increasing for AMD since the last few
years and the market gross for Intel had been declining substantially. This is due to the
inverse proportionality attribute of the market share. This could be majorly due to lack of
diversity in the products produced by the Intel and the price to value addition has been
declining in Intel over the years.
Net Profit Margin:

Net Profit Margin

35

30

25

20

15

10

0
2017.5 2018 2018.5 2019 2019.5 2020 2020.5 2021 2021.5

Intel AMD

The above graph shows that the net profit margin has changed exponentially with AMD as
there had been an introduction of Ryzen processors, pertaining to performance based utility.
This is also a result of Sony and Microsoft choosing AMD as their manufacturing partner for
the gaming console production as the processors do not require any computation and multi-
tasking and have only served the purpose of entertainment. The above situations has resulted
into the inclination of customer segments towards the AMD which has in turn resulted in
increase in Net Profit of the company.
Return on Investment:

ROI
45

40

35

30

25

20

15

10

0
2017.5 2018 2018.5 2019 2019.5 2020 2020.5 2021 2021.5

Intel AMD

The above graph shows the return on investment for AMD has increased by 4 times in 2020
as a result of their Big Navi introduction. It was an entrance into the PC gaming segment
where the NVIDIA graphics have established their monopoly over the last decades.
This has given the community a choice to buy from and also NVIDIA, a competitor to keep
up with.
The affordability and the availability of these GPUs has resulted in the quadrupling of the
return on investment over the years showing why a diversity is important. This is now
adapted by Intel, which is now concentration on the Graphical Processing Unit department
for diversifying the revenue streams.