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Why shouldn't AMD bow out from a space temporary or otherwise when they are not being competitive in that space?

They have been successful at providing graphic cards to game consoles. They have been unsuccessful in the PC CPU space.

Whats wrong with Intel? They became stagnant and complacent started facing competition from AMD. Then they stepped it up and more recently have done nothing but truely stellar hardware and great prices. Their on-board graphics chips have also been getting better and they have also innovated important consumer focused features. All the MacBooks and iMacs are now running on Intel chips.

Is the concern that Intel has no competition? Well just look at what the iOS devices are running on... not Intel but rather ARM.

AMD is getting squeezed out by both Intel and ARM. ARM is the bigger competitor to Intel. Companies compete, innovation takes place and consumers benefit.

Please forget about product/brand loyalty. May the best product for the right price always win.