AMD Is Now Worth More Than Rival Intel

Hmmmmmm shares a report from Yahoo Finance: AMD's market cap currently stands at $188 billion after shares rose nearly 2% in Tuesday's session. Intel's market cap is $182 billion. That marks the second time in a week AMD's market value has climbed above Intel -- the first time it happened was a week ago. Followers of this battle may not be surprised to see this one happen (and seeing it continue from here) for several reasons. First, AMD has been winning the battle on Wall Street for sexier investment thesis. AMD last week closed on its $35 billion acquisition for Xilinx. Secondarily, AMD has flat out posted better financials than Intel (for some time) as it has gained market share in key areas (notably in servers). AMD's sales and profits rose 68% and 117%, respectively in 2021. The company outlined 31% revenue growth for 2022 and gross profit margins of 51%. Intel's 2021 sales and earnings increased 2% and 7%, respectively. The company sees sales in 2022 rising about 2%. Profits are expected to drop 36% as Intel further builds out its chip-making capacity.

Intel will come back

[Anonymouse Cowtard]

Their current generation of mobile processors perform better than AMD's. But the server space is where it's at and it will take Intel 3 or 4 years to get back, but they will once the next generation of fabrication comes online.

Re:

[Ostracus]

Put in a better Management Engine and get SGX working.

Significance

[Retired Chemist]

I am not sure why this matters. A company's market capitalization can have very little to do with its underlying value. All this means is that the people who speculate in computer chip stocks have been buying AMD and not Intel. It tells you little or nothing about the true quality or lack thereof of their products and their future.

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[Rockoon]

All this means is that the people who speculate in computer chip stocks... and but their money where their mouth is

FTFY

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[Retired Chemist]

And investors are always wise about how they invest their money (LOL!!)

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[Zorpheus]

So you think the majority of investors have no idea what they are doing?

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[Zaraday]

You're absolutely right; stock price isn't everything. Intel is the only major tech company that technically still hasn't recovered from the dot com burst over twenty years ago, and yet here they are, still the behemoth when it comes to making processors. Sure, they've rested on their laurels a few times in their history, but their products are still mostly solid and competitive.

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[AmiMoJo]

It suggests that analysts think AMD has a brighter future than Intel.

I tend to agree. Intel's big.LITTLE knock-off does produce some decent numbers, but only because AMD hasn't got their version out yet. All the gains Intel has made are offset but its reliance on outdated manufacturing processes (14nm+++).

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[BrookSmith]

Speculators aren't the only people who are interested in AMD shares, investors looking to take up a long term position in a high quality company with low to no debt, growing revenues, growing earnings, growing free cash flow, and now in a market dominant position where they can dictate the margin of the the products they sell AMD is an exceptional proposition, especially with its share price so heavily discounted.

Intel is still 4x AMD

[erice]

Intel revenue is more than 4x that of AMD and profit is about the same ratio. You might speculate that AMD is going to somehow take over but AMD is also famous for getting into a good spot and then blowing it.

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[Junta]

Ah yes, many should remember when Opteron just embarassed Intel and AMD seemed firmly on track to dominate.

Then Intel went Nehalem and AMD went Bulldozer and AMD became pretty irrelevant for a *LONG* time.

Here's hoping AMD learned a few things to keep things interesting in a sustained manner this time.

Re:Intel is still 4x AMD

[serviscope_minor]

Ah yes, many should remember when Opteron just embarassed Intel and AMD seemed firmly on track to dominate.

Then Intel went Nehalem

You missed the bit where Intel illegally paid out bribes to stop people using AMD kit thereby denying AMD crucial revenue they needed to reinvest at the key point in time. AMD didn't blow it, illegal practices by Intel blew it.

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[Vlad_the_Inhaler]

I'm not sure that "bribes" is the correct word, but it comes close enough anyway. Intel were giving discounts to manufacturers who did *not* also sell computers with AMD processors.
The events were a pretty big deal at the time and it surprises me that most people here seem to have forgotten about them. Intel had to pay a large settlement to AMD, it would have been a lot larger except that the whole business had hurt AMD so badly that they were in danger of bankruptcy and needed the money then and there.
Th

Re:Intel is still 4x AMD

[madbrain]

It's anti-competitive behavior no matter how you look at it. Both Microsoft and Intel are very skilled at it. But are by no means the only ones.

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[exomondo]

It's anti-competitive behavior no matter how you look at it. Both Microsoft and Intel are very skilled at it. But are by no means the only ones.

Yes, you're absolutely right that it is anti-competitive behavior but just because it's anti-competitive doesn't mean it is illegal. For example Apple does a whole lot of anti-competitive stuff but they don't have a monopoly position or what is considered "signficant market power" in terms of anti-trust laws so it's not illegal. Intel is the same, that's why they haven't been prosecuted for this, same reason Apple hasn't been prosecuted for all their anti-competitive behavior.

People very often see anti-comp

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[madbrain]

IANAL so I can't really comment on the legal details. However, Intel had 80% market share for x86 CPUs until recently. Looks like they are now down to 65%. They are not a monopoly, but still a large majority in their business. They have been prosecuted before for anti-competitive behavior, and probably will be again.
I didn't say anything about Apple, but I seem to remember cases against them related to their app store. Plenty of civil cases, and some criminal cases in the EU.
EU seems to have much stronger a

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[exomondo]

However, Intel had 80% market share for x86 CPUs until recently. Looks like they are now down to 65%. They are not a monopoly, but still a large majority in their business.

Right but again anti-competitive behavior is not illegal, I agree it's a bad thing and in many cases I agree it should be illegal but you can't sue a company for something legal just because you don't like it. There is a long history of anti-trust lawsuits hindering or crippling companies like Microsoft and AT&T, Intel has an extensive anti-trust compliance team to make sure they don't fall afoul of anti-trust law and comply with the law so as not to engage in illegal anti-competitive behavior.

They have been prosecuted before for anti-competitive behavior, and probably will be again.

Yes they

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[Junta]

The financial community has a history of somewhat irrational behaviour,

Chasing dividends is actually a very rational behavior for an investor who is investing for the sake of money and not for the sake of believing in the company for its sake. The fiscal motivations are dividends, stock buybacks, or speculative around selling to the next guy. That third option looks pretty pyramid shaped.

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[Junta]

True they unfairly suppressed AMD's revenue and that is wrong.

However, AMD *did* make a bold architectural move, that was actually a bad call at the same time Intel made a big move to basically catch up to AMD architecture pre-bulldozer. So what R&D capacity they did have, they went a bad direction with it.

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[Penguinoflight]

It's true that the 8/4 design was a bad choice, but I think the agency that AMD had there was exaggerated. Putting time into context, intel had already seized the performance crown from AMD in 2008, with the majority of AMD's relative success during the phenom 2 era being due to the fact that their 4 core processors were priced in line with the 2/4 1st gen i5.

Match up a $200 fx-8150 to one of those 2nd gen i5's and it's even more favorable than the phenom 2 that it replaced, but intel stacked an additional

If that's how you choose...

[Roger W Moore]

If the largest market cap is how you choose the next CPU you plan on using then Apple has both of them beat so enjoy your new M-rated mac. The price might be eyewatering but that's how they got their market cap.