For the second time this year, AMD’s market capitalization surpassed Intel

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2022-08-02 14:00:15

In Friday’s trading session, AMD’s market capitalization surpassed rival Intel. This is the second time AMD’s market capitalization has surpassed Intel’s after the first time in mid-February this year.

In Friday’s trading session, AMD shares rose 3%, giving the chipmaker a market capitalization of $153 billion. Intel shares, meanwhile, fell 9%, a day after a bad earnings report when the company fell short of profit expectations and sales tumbled. At the end of the session, Intel’s market capitalization reached $148 billion.

AMD CEO Lisa Su

Although this is only a symbolic criterion, it also shows how fierce competition is in the PC and server chip market, where the two companies are directly vying with each other.

This milestone shows that investors are valuing a chipmaker with few assets higher than one that invests heavily in manufacturing. While Intel has said it plans to continue building and operating its factories, AMD has outsourced chip production and abandoned factories.

More importantly, in recent years, AMD chips have become much more competitive than Intel products in terms of performance, even surpassing Intel in processing speed and power efficiency in a number of applications. use.

During Thursday’s earnings call, Intel said its poor results for the past quarter reflected operating problems and lowered its EPS (earnings per share) forecast from 3. 6 USD down to 2.3 USD. Intel also blamed the slow growth of the PC market and macroeconomic conditions for the recent poor results.

In a subsequent CNBC interview, Intel CEO Pat Gelsinger compared the strategy of getting Intel back into the limelight to climbing Mount Kilimanjaro.

AMD’s earnings report is due out tonight, giving investors an idea of ​​whether the company is facing the same macro problems as Intel as the PC market shrank across the globe. world.

Check out CNBC

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