While Intel may be losing sales and taking a hit on gross margins, it still isn't losing any actual money. Intel's CCG made +1G$ net income in Q2. AMD won't get magically spared from the market going back to pre-COVID sales: AMD's income was down 21% Q/Q for Q1 too.At a time when AMD's CPU profits are soaring, Intel is losing money in its CPU division. Should this continue for another few years, Intel will become an historical footnote.
The only reason Intel posted an overall loss is because it ramped up investments in new equipment and facilities slightly beyond what its net income can cover. It is perfectly normal for companies to post losses when making major investments and Intel can easily take 500M$ out of its investment slush fund to cover the deficit if it wanted to, though it is likely still cheaper to borrow money at current interest rates.