What happened

Shares of Advanced Micro Devices (NASDAQ:AMD) jumped 16.5% on Friday after rival Intel (NASDAQ:INTC) said it would delay the launch of its newest processor chips.

So what

AMD recently debuted its new Ryzen 4000 Series processors that are built via an advanced 7-nanometer manufacturing process. They have strong graphics capabilities and promise powerful gains in performance and energy efficiency. They're expected to help AMD compete effectively with Intel in the high-end gaming market, as well as the massive mainstream consumer PC market. 

A person is pointing to an upwardly sloping line that's above a downwardly sloping line.

Advanced Micro Devices' stock rose sharply on Friday as Intel's shares fell. Image source: Getty Images.

AMD's market share gains may now be even easier to come by. Intel said in its second-quarter earnings report that it will delay the launch of its 7-nanometer chips for at least six months. The delay will give AMD a valuable head start -- one that Intel may find difficult to recover from.

Now what

The once-mighty Intel is now struggling. The chip giant recently lost a major contract with Apple, which will soon begin to create its own chips for its popular Mac computers. Intel's latest delay with its new 7-nanometer chips is just another black eye for the previously formidable company.

AMD, meanwhile, is taking advantage of its rival's missteps. Market share increases have propelled its stock to gains of more than 50% so far in 2020. And with more customer wins likely ahead, AMD's share price could continue to trend higher.