AMD rises up microprocessor ranks after ATI acquisition

According to market research data from iSuppli, AMD has risen from number 15 to number eight in the world rankings of microprocessor businesses, with a 91.6% rise in sales revenue between 2005 and 2006, largely thanks to the acquisition of ATI last year to form a mega company specialising in processors and graphics cards.

AMD has managed to close the gap on its rivals, with most of those ahead of it in the microprocessor rankings only having one percentage point lead on the company. At the end of 2006 AMD held 2.9% of the microprocessor market. Not quite the giant one might be led to otherwise believe, this is a big gain for AMD.

Intel meanwhile has been losing ground, with an 11% decrease in sales revenue in 2006 compared to 2005. The company holds 12.1% of the microprocessor market, being the only company with double-digit market share. iSuppli blames Intel’s falling revenue on "bleak performance in its core PC microprocessor and flash-memory businesses."