The massive loss that AMD predicted for its Q2 financials last week overshadowed another setback for the chip company in its travails. Figures from market research company Mercury Research, which reported that AMD managed to secure 16.1 per cent market share in the last quarter of 1998, show that Intel has clawed its way back in the entry level market. The latest set of figures from Mercury now show that AMD's share fell to 13.6 in the first quarter of this year, while Intel's share rose from 75.9 per cent to 80.3 per cent. The Mercury figures show that AMD has lost share to Intel's Celeron. During the course of this year, Intel has remorselessly cut the cost of its entry level processors, which are practically identical to Pentium IIs. AMD has spare stocks of processors, the company admitted last week. ®