Chipmaker Intel posted a quarterly profit fall of a whopping 40 per cent last night, indicating it is steadily losing out in the price war with main rival AMD. Shares in the company fell 3 per cent on the news.

The company's gross margin outlook for this year is also on shaky ground, with one analyst saying that "If Intel is saying they don't expect any gross margin increase this year, that's a disappointment."

The price war between Intel and AMD is a fiery one, with AMD being the main loser. In the last 12 months, Intel shares have fallen by 15% while AMD stock's value has fallen 50%.
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