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VOL. 8, ISSUE 2 (2026)
Competitive advantage in the AI semiconductor industry: A comparative study of NVIDIA, AMD, and Intel
Authors
Dr. Lung-Tan Lu
Abstract
The research uses Porter's Five Forces
analysis as its theoretical basis to evaluate how three top semiconductor
companies—NVIDIA and AMD and Intel—perform in their main business areas through
their competitive market systems and profit generation abilities. The research
shows that the three companies operate in the same semiconductor market but
they face different competitive challenges because their products and business
operations and network systems vary. Through its technological superiority in
AI GPU production and CUDA system capabilities NVIDIA achieves minimal
competition from current market players and new market entrants and substitute
products which creates an excellent market situation. The five competitive
forces create intense market challenges for AMD because it operates in two
competitive spaces which include server CPU and AI GPU markets. The PC market
reached its peak market value which made Intel face its strongest competition
because ARM processor architectures became more popular and customers gained
more control during their buying process. The study reveals that ecosystem
lock-in effects have developed into a separate force which now ranks above the
traditional Five Forces system to form a new essential element that impacts
business competition. The fabless business model allows companies to focus on
research and development while building their operational network but the IDM
model lets them control their supply chain and manage their expenses. The
profitability of a business depends on more than its technological abilities
because it involves how industry systems and natural networks and business
strategies interact with each other.
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Pages:100-110
How to cite this article:
Dr. Lung-Tan Lu "Competitive advantage in the AI semiconductor industry: A comparative study of NVIDIA, AMD, and Intel". International Journal of Management and Economics, Vol 8, Issue 2, 2026, Pages 100-110
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