AMD is once again more valuable than Intel

midian182

Posts: 8,307   +103
Staff member
What just happened? AMD has once again surpassed its processor (and soon-to-be GPU) rival Intel in terms of market capitalization. The companies swapped places after Intel revealed a very difficult quarter that saw it lose half a billion dollars. AMD, meanwhile, will report its second-quarter earnings tomorrow (Tuesday, August 2), when it's expected to confirm strong growth over the three months.

This isn't the first time AMD has passed Intel when it comes to market cap. That happened in February when team red's $49 billion all-stock takeover of Xilinx boosted its market cap to $197.75 billion, pushing past Intel's $197.24 billion by $51 million.

AMD only managed to stay ahead of Intel for a few weeks before Chipzilla once again became the more valuable company. But that changed in the wake of Intel's disastrous quarterly report in which it announced a 22% year-on-year revenue decline of $15.3 billion and a $454 million net loss, which represents a 109% YoY fall. Intel blamed the disappointing figures on the same factors that all faltering tech companies are pointing at: an economy teetering on the brink of recession, falling demand following the lockdown boom, and conservative consumer spending.

Intel's shares crashed by almost $5 to $36 on the back of the report, sending its market cap down to $148.47 billion at the time of writing.

While AMD isn't set to reveal its quarterly results until tomorrow, the company is expected to buck the doom and gloom trend by showing strong growth. Analysts project revenue of $6.5 billion, a 70% YoY increase. And while its shares are down considerably from the start of the year—something virtually every company is experiencing—the price has rallied by 28.7% in the last month, taking AMD's market cap to $153.09 billion, almost $5 billion more than Intel.

Market caps are calculated by multiplying the share price by the total number of a company's outstanding shares. They're mostly symbolic but can help illustrate a firm's current fortunes.

Intel remains dominant in the CPU market. The latest Steam survey shows its processors are found in 68.47% of participants' machines, but AMD has been eroding that share for years, thanks to the arrival of the Zen architecture in 2017. With Zen 4 and Raptor Lake launching later this year, it'll be interesting to watch the upcoming battle between these tech titans.

Intel also announced in its financial report that it would be shutting down its Optane memory business, is ceasing the development of 3D Xpoint technology, and had sold off its drone business.

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George Keech

Posts: 265   +457
This sort of shows how market capitalisation can be deceptive. Everyone knows Intel has so many more resources that AMD. Like Microsoft Intel probably just have a bank account with Billions in it (or equivalent bonds etc)
 

Uncle Al

Posts: 9,281   +8,446
Actually, you can look up Intel on Edger where all financials are required (by law) to be listed and having done so I found the report to be accurate. Intel does indeed have many more assets but they don't completely offset their losses.

Thankfully AMD & Intel continue to battle each other and unlike several other companies in different sectors, they have not put together any kind of cooperative agreement to defraud the consumers. Hopefully that never changes!
 

Irata

Posts: 2,221   +3,857
Imho, that market cap is not appropriate, even though this contains a future outlook. You see similar things in other sectors though, so this is nothing new.

Resource and capacity wise they are far apart an Intel still has that sweet government money coming, most likely with no real strings attached.

Don‘t get me wrong, I am perfectly happy things are going so well for AMD.
 

paul1122

Posts: 249   +265
AMD has always been more valuable in my personal system only because it uses an AMD processor.
Things would be different if it used an Intel processor indeed.
 

Skjorn

Posts: 711   +582
Lol OK. The company that only had enough cash to make blueprints is worth more lol
Using market cap as the identifier lol
Intel has a realistic P/E
AMD has a P/E 5x that of Intel. The stock price for AMD far exceeds their earnings. It's all hype lol
 

takaozo

Posts: 398   +617
For me AMD Cpu was always better value for cash.
Owned a few along the way, directly purchased by me:
K6 II 500 Mhz
Athlon K7 1Ghz - Slot A
AthlonXP - Barton 2500+
Athlon 64 3200+
Ryzen 5 5600x
Let's hope I will be able to get more CPU's in the future from them.

Had some Intel Cpu's along the way, but from work or donated to me. Never purchased by me.

 

Theinsanegamer

Posts: 3,745   +6,504
Lol OK. The company that only had enough cash to make blueprints is worth more lol
Using market cap as the identifier lol
Intel has a realistic P/E
AMD has a P/E 5x that of Intel. The stock price for AMD far exceeds their earnings. It's all hype lol
AMD, unlike most silicon valley darlings, took the "potential growth" rating and actually GREW. They went from loosing $300 million a year to making $768 million. Their server sales continue to show growth while intel's are declining, and that is the big money maker.
 

wiyosaya

Posts: 8,237   +7,576
AMD, unlike most silicon valley darlings, took the "potential growth" rating and actually GREW. They went from loosing $300 million a year to making $768 million. Their server sales continue to show growth while intel's are declining, and that is the big money maker.
IMO, quite true. Though gamers did not like it, AMD was wise to target the server market with the first, and subsequent generations of Zen, and since those first generations of Zen, AMD also strived to improve performance generation to generation while Intel kept doling out piddling performance improvements, rested on its laurels, and relied on its reputation instead of actively striving to improve performance like AMD has, IMO. IMO, the higher-ups at Intel must be smoking some seriously good stuff if they think they can keep doing business as usual and not have AMD leave them in the dust. The funny thing about it is that Intel thinks that the way out of this for them is to raise prices. :rolleyes:
 

SG736F6

Posts: 176   +269
For me AMD Cpu was always better value for cash.
Owned a few along the way, directly purchased by me:
K6 II 500 Mhz
Athlon K7 1Ghz - Slot A
AthlonXP - Barton 2500+
Athlon 64 3200+
Ryzen 5 5600x
Let's hope I will be able to get more CPU's in the future from them.

Had some Intel Cpu's along the way, but from work or donated to me. Never purchased by me.


Your CPU history is wildly similar to my own. I don't have time to break them all down but it's kind of creepy. Did I find my CPU doppelganger?
 

MarcusNumb

Posts: 96   +155
Well done AMD, but please just don't raise prices of your coming AM5 platform. I'm expecting 10 - 15% price increase but it it's more than that, I'll just stay with my 3600x until it dies xD
 

takaozo

Posts: 398   +617
Your CPU history is wildly similar to my own. I don't have time to break them all down but it's kind of creepy. Did I find my CPU doppelganger?


Not sure about your purchase decisions, but mine were heavy influenced by price to performance ratio. Reviews in Chip magazine and Xbitlabs or Tom's.
Also maybe from my jobs, where each PC was an Intel and slow AF. I use to say that my home PC video card has more memory than the office desktops. I still remember the day I purchased my first AGP 3D accelerator, a Voodoo Banshee 16MB.
 

Mr Majestyk

Posts: 1,439   +1,342
But but Alder Lake. AMD were finished according to expert financial analysts that regularly post on these forums.

Gelsinger can trash talk all he likes, but at the end of the day Intel fails more often than not on actually delivering products anywhere near on time. cRaptor Lake will be a paper launch, Arc has been a sad joke, Sapphire Rapids pushed to 2023, Meteor Lake delayed, meaning Arrow Lake delayed, Ponte Vecchio barely shipping and yet they are hyping it's replacement already.
 

s3thra

Posts: 41   +53
TechSpot Elite
For me AMD Cpu was always better value for cash.
Owned a few along the way, directly purchased by me:
K6 II 500 Mhz
Athlon K7 1Ghz - Slot A
AthlonXP - Barton 2500+
Athlon 64 3200+
Ryzen 5 5600x
Let's hope I will be able to get more CPU's in the future from them.

Had some Intel Cpu's along the way, but from work or donated to me. Never purchased by me.
Ooh I like this game.

My list through the years:

-- Family computers growing up --
AMD 386
Intel Pentium MMX
Intel Celeron Coppermine

-- My primary desktop computers I have built and used --
Intel Pentium 4 Northwood
AMD Phenom 9950 BE
AMD Phenom II 955 BE
Intel Core i5 3570k
AMD Ryzen 2600
AMD Ryzen 3700X
 

Tantor

Posts: 365   +642
Ooh I like this game.

My list through the years:

-- Family computers growing up --
AMD 386
Intel Pentium MMX
Intel Celeron Coppermine

-- My primary desktop computers I have built and used --
Intel Pentium 4 Northwood
AMD Phenom 9950 BE
AMD Phenom II 955 BE
Intel Core i5 3570k
AMD Ryzen 2600
AMD Ryzen 3700X

Yep, I jumped on the AMD train with the 486. I never went back to Intel after that. There were some lean years with Bulldozer, but I owned several and they were rock solid.

We're a bunch of gray beards here.