AMD surpasses Intel's market cap for the first time ever

[midian182]

What just happened? AMD’s fortunes have turned around since the launch of its first Zen architecture in 2017, though few would have expected it to hit this milestone in such a short amount of time: AMD now has a larger market cap than rival Intel for the first time ever.

The sudden boost in AMD’s market cap came from its $49 billion all-stock takeover of Xilinx on Monday, 15 months after the move was announced. The change in the companies’ stock prices added 40% extra to the deal; it was worth $35 billion back when first AMD revealed its intentions.

The acquisition is one of the largest in tech history, sitting behind Dell paying $67 billion for EMC in 2015 and Microsoft's recent purchase of Activision Blizzard for $68.7 billion.

The deal meant that for every share of Xilinx a shareholder held, they received 1.7234 new shares of AMD, converting 248.38 million of the former into 428 million of the latter. As a result, AMD’s overall share count increased to 1.628 million, writes Tom’s Hardware.

The increase in the number of shares saw AMD’s market cap jump to $197.75 billion, pushing it past Intel’s $197.24 billion by $51 million.

Steam survey

It’s been a good month for AMD. In addition to passing Intel’s market cap, team red hit a record 25.6% share of the overall x86 market. It also bounced back in January’s Steam survey after the number of participants using its CPUs fell in December. Moreover, its stock price is $121.47, more than double Intel’s $48.44.

Intel still boasts three-quarters of the x86 market share, of course, and its CPUs are found in 70% of Steam survey participants’ PCs. It also brings in more revenue and profit than AMD, not to mention it has its own fabs. But the Ryzen maker keeps chipping away at the blue team's lead, and we can expect things to get even more interesting when the all-new Zen 4 arrives later this year.

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https://www.techspot.com/news/93418-amd-has-larger-market-cap-than-intel-first.html

 

[bviktor]

Kudos to them, keep up the good work! Healthy competition is a wonderful thing.

 

[paul1122]

"Intel still boasts three-quarters of the x86 market share, of course, and its CPUs are found in 70% of Steam survey participants’ PCs. It also brings in more revenue and profit than AMD, not to mention it has its own fabs."

Don't worry Intel, we're still with you.

 

[Puiu]

I really hope AMD can deliver with Zen4.

 

[Nintenboy01]

I really hope AMD can deliver with Zen4.

Most likely yes. It'll be on 5nm and have a wider architecture so will likely perform better and use less power than Raptor Lake even.
It's actually impressive that Zen 3 isn't that far behind Alder Lake considering it's a 4-wide versus 6-wide design.

 

[Theinsanegamer]

"Intel still boasts three-quarters of the x86 market share, of course, and its CPUs are found in 70% of Steam survey participants’ PCs. It also brings in more revenue and profit than AMD, not to mention it has its own fabs."

Don't worry Intel, we're still with you.

Nothing he said is wrong. Sorry, you may love AMD, but it remains true that intel is the 900lb gorilla in the room, and they have serious cash on hand. "market cap" doesnt mean R+D budget, production capacity, or profit.

 

[QuantumPhysics]

I was buying AMD under $48 per share. Tried to encourage others to do so as well.

 

[letsgoiowa]

Man I should've bought much more at $4 a share. Cashed out of most of it at $80, so I'm pretty content with that. But then again, you gotta have money to make money, and I just didn't.

 

[Puiu]

Most likely yes. It'll be on 5nm and have a wider architecture so will likely perform better and use less power than Raptor Lake even.
It's actually impressive that Zen 3 isn't that far behind Alder Lake considering it's a 4-wide versus 6-wide design.

If rumours turn out to be true we'll get an ~25% IPC increase, plus 100-200 extra MHz. I don't believe we'll see an increase in core counts for consumers, although some speculate that Ryzen 9 will be 20/24 cores.

 

[wiyosaya]

Man I should've bought much more at $4 a share. Cashed out of most of it at $80, so I'm pretty content with that. But then again, you gotta have money to make money, and I just didn't.

Stuff happens. I have a friend that once told me his father had a chance to buy "Haloid" in the very early days, but did not. FYI - "Haloid" is now Xerox.

We all wish we were in on investments that really took off. My best, so far, is FSDAX.

 

[wiyosaya]

I was buying AMD under $48 per share. Tried to encourage others to do so as well.

Well, you know that old adage - "You can lead a horse to water..."

 

[Bobbydpue]

Most likely yes. It'll be on 5nm and have a wider architecture so will likely perform better and use less power than Raptor Lake even.
It's actually impressive that Zen 3 isn't that far behind Alder Lake considering it's a 4-wide versus 6-wide design.

There is no evidence to support any of this. It's all rumor and speculation until you can actually buy it and third parties have tested it. It's not real until it's real.

 

[Bobbydpue]

Nothing he said is wrong. Sorry, you may love AMD, but it remains true that intel is the 900lb gorilla in the room, and they have serious cash on hand. "market cap" doesnt mean R+D budget, production capacity, or profit.

Agreed. What does market cap even mean about a business? Can that be used as a measurement of how good their products are?

 

[theruck]

So much money collected and they are not able to find out what to do with it

 

[Sausagemeat]

I really hope AMD can deliver with Zen4.

For me personally “deliver” involves much cheaper prices. I don’t care as much which is the absolute fastest, I just don’t want to have to spend $300 for the cheapest piece of silicon on offer just to play games.

I would rather see something like a 5800X for $250 than a new part that’s a little faster but maintains the $450 MSRP.

 

[punctualturn]

Congrats AMD!

And so sad to see the intel fanbois ignoring what a despicable company Intel is.

Already forgot the decade of the 4 core hell they kept us when they almost killed AMD (due to their illegal actions, which of course is also ignored)?

People have no moral compass anymore or maybe all need some help with their Stockholm syndrome sickness.

 

[Bullwinkle M]

Well, you know that old adage - "You can lead a horse to water..."

Well, you should know that other old adage - "You can lead a horse to water but you should wait for the market to correct itself before telling anyone to invest in AMD again"

 

[paul1122]

Nothing he said is wrong. Sorry, you may love AMD, but it remains true that intel is the 900lb gorilla in the room, and they have serious cash on hand. "market cap" doesnt mean R+D budget, production capacity, or profit.

lol. I don't love AMD. Had a Cyrix at one point. I'm not commenting on the CPU's or who makes them.

 

[Mr Majestyk]

But but, Alder Lake destroyed AMD according to Gelsinger and his motley crew of rabid fanboys on Wccftech.

 

[hahahanoobs]

I think they should get out of the dGPU and desktop APU business unless there is some consistency very soon.

 

[meric]

I like AMD's CPUs but I'm done with Radeon unless they pull a rabbit out of a hat with their next graphics.

 

[Puiu]

I like AMD's CPUs but I'm done with Radeon unless they pull a rabbit out of a hat with their next graphics.

It's all about the prices in your region. For a long time, where I live, Radeon cards were much much cheaper than Nvidia cards. The 6500 disaster aside, the rest of the GPUs aren't bad.
For example, even now I can find the 6800XT for about 1300 euros (19% tax included, still crazy expensive) and the RTX3080 is 1550 euros

 

[poohbear]

For me personally “deliver” involves much cheaper prices. I don’t care as much which is the absolute fastest, I just don’t want to have to spend $300 for the cheapest piece of silicon on offer just to play games.

I would rather see something like a 5800X for $250 than a new part that’s a little faster but maintains the $450 MSRP.

Cheaper prices only happen with good competition. Remember when Intel was releasing mediocre 4-core CPUs year after year for almost a decade?! Then, finally, a resurgent AMD came...and BOOM a few years later we get Alder Lake. Finally! A worthy CPU upgrade. If AMD comes up with 12 cores in their 7000 series, u can bet your as$ Alder Lake prices will drop fast. That's all because of competition.

 

[poohbear]

Well, you should know that other old adage - "You can lead a horse to water but you should wait for the market to correct itself before telling anyone to invest in AMD again"

I remember when Nvidia hit $70/share (long before the 4-way split) and people said it's SO overpriced don't touch that! Its now $1060/share pre stock-split price.

There are only 2 companies that make the GPUs for datacentres, gaming, AI, & smart vehicles: Nvidia and AMD.

 

[Sausagemeat]

Cheaper prices only happen with good competition. Remember when Intel was releasing mediocre 4-core CPUs year after year for almost a decade?! Then, finally, a resurgent AMD came...and BOOM a few years later we get Alder Lake. Finally! A worthy CPU upgrade. If AMD comes up with 12 cores in their 7000 series, u can bet your as$ Alder Lake prices will drop fast. That's all because of competition.

That’s not really true, since Ryzen came along the prices have only gone up. Before Ryzen the most expensive consumer grade CPU was $300. Last year AMD launched their 5000 series starting at $300.

Competition should bring cheaper prices but Ryzen hasn’t done that. AMD massively jacked its prices last year. They don’t sell anything Ryzen for under $200 anymore. But in 2019 people could get a 3600 for $150!

Currently Intel charges more than they used to pre-Ryzen but are cheaper than Ryzen now.