Xeon has been making 50–70% profit margin depending on the Xeon type. Intel's profit margins will take a hit when they are forced to cut prices. It's unlikely that AMD has enough manufacturing capacity to fill all demand, so Intel will still make profit.
History:
AMD had similar upper hand against Intel with their Athlon processor 20 years ago. Intel's transition to the 180 nm process was delayed and AMD's K7 Athlon was superior microarchitecture. Intel's response was to lower profit margins until AMD was in the ropes again.
This time AMD has better change, but don't count out Intel. AMD's success depends on their profit margins when competing against Intel. If Intel force AMD's profits close to zero, it can spoil AMD's technical win.
History:
AMD had similar upper hand against Intel with their Athlon processor 20 years ago. Intel's transition to the 180 nm process was delayed and AMD's K7 Athlon was superior microarchitecture. Intel's response was to lower profit margins until AMD was in the ropes again.
This time AMD has better change, but don't count out Intel. AMD's success depends on their profit margins when competing against Intel. If Intel force AMD's profits close to zero, it can spoil AMD's technical win.
https://www.macrotrends.net/stocks/charts/INTC/intel/profit-...
https://www.macrotrends.net/stocks/charts/AMD/amd/profit-mar...