When Intel (INTC) made its earnings announcement for the last quarter, the information that stood out in investors' minds was that the company's management said they were seeing a bottoming of the PC market. Intel's smaller competitor AMD (AMD) has a different view.
AMD is now a shadow of what it was three years ago, when it was gaining market share in the PC and server markets and believed its R&D could create chips substantially better than Intel's. But Intel would have none of it. By dropping its prices, it squeezed AMD's margins.