As if there were not that many warning signs for INTC, here comes Amazon.  While Amazon won't its chips direct to consumer yet, it is a major customer of INTC, so this account may be losing its value

 

Market Chatter: Intel Firmer Despite Report on Growing Challenge From Amazon in Chip Market

MT NEWSWIRES 2:53 PM ET 12/11/2018 

02:53 PM EST, 12/11/2018 (MT Newswires) -- Intel(INTC) was up almost 1% late in Tuesday trading, largely resisting downward pressure after a New York Times report highlighting Amazon.com's(AMZN) growing expertise with chip-making.

Amazon (AMZN) late last month disclosed it was using a new semiconductor chip it built inside the internet servers that keep the online retailer in business. It has no plans at this time to sell its chips directly to consumers but the recent development still places Amazon(AMZN) in competition with Intel(INTC), which has traditionally dominated the global server market and has been the chipmaker's best source for revenue growth in recent years.

Amazon (AMZN) spent a reported $350 million in 2015 to acquire Annapurna Labs, a chip maker that helped build the new central processing unit used in Amazon(AMZN) servers. The company also has designed a chip for artificial intelligence, called the Inferentia.

 

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)