AMD's share price jumps above Intel's for first time since 2006

midian182

Posts: 6,009   +50
Staff member
What just happened? While it’s turning out to be a good year for AMD, the same can’t be said for Intel. For the first time since 2006, team red’s share price has climbed higher than Chipzilla’s, and the gap has grown even wider in after-hours trading following Intel’s admission that 7nm production will be delayed by at least six months.

In its second-quarter earnings report yesterday, Intel revealed that revenue is up 20 percent, but complications mean 7nm-based CPU production is backed up and 12 months behind schedule, meaning a delay of at least six months.

AMD, of course, has been on 7nm since the release of its Zen 2 architecture in July last year. With news that Intel will take even longer to catch up with its processor rival, the company’s shares sank in after-hours trading, while AMD’s soared. Lisa Su’s firm already saw its share price briefly surpass Intel’s hours before the earnings report—something that hasn’t happened since 2006. Currently, Intel stands at $54, while AMD is at $64.32.

AMD is still far behind Intel when it comes to market cap, calculated by multiplying the share price by the total number of outstanding shares. The former is at just under $70 billion, while the latter is $255 billion. Nvidia, which for a short time was valued higher than Intel, is at $249 billion.

While the pandemic has brought economic doom and gloom for many, big tech firms have benefitted thanks to demand from datacenters, gamers, and online shoppers. With AMD confirming the arrival of consumer Zen 3 this year, and Nvidia’s RTX 3000-series on the way (and it's possible acquisition of Arm), expect the companies’ stock to rise even higher.

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Uncle Al

Posts: 7,396   +5,835
If they are smart, now would be a good time to have a 2 for 1 split to encourage MORE sales of shares .... not that their share price is higher, but the lower price will make is more attractive ...
 

poohbear

Posts: 483   +361
Intel's conference call was an absolute disaster! The stock dropped nearly 20% in today...its worst one-day performance in its HISTORY. When Bob Swan said 7nm might be delayed by up to one year and they might have to outsource their manufacturing, analysts went ballistic on him! Bob Swan needs to go back to being a CFO, he's terrible as a CEO. Intel seriously needs new leadership, the past few years have been a complete train wreck. Look what Lisa Su did to AMD in the past 5 years, a complete 180 turn around and AMD stock has reached an all time high today.
 

poohbear

Posts: 483   +361
If they are smart, now would be a good time to have a 2 for 1 split to encourage MORE sales of shares .... not that their share price is higher, but the lower price will make is more attractive ...
lower price? it's only $50 a share after today's selloff ...those 2 for 1 splits are for $1000+ shares like Amazon, Google, Tesla etc. Besides, the big investment firms don't like 2 for 1 splits anymore, it's simply not done anymore. Retail investors can buy fractional shares of the $1000+ stocks if they can't afford those share prices, the 2 for 1 splits don't happen anymore.

I bought AMD, Nvidia and Logitech back in March.

Very very happy. AMD and Logitech already doubled my investment and Nvidia tripled it.
Totally agree. Anyone that bought semiconductors in the past 4 years is laughing now. AMD was $3 in 2016 and $65 today, Nvidia $35 in 2016 and $400 today...they've just grown ridiculous amounts...except Intel. :p But if u don't innovate in this industry you're toast.

I hope all you tech geeks are investing in the companies you know! Best decision ever was to take my knowledge of these companies and invest in them...just be sure to be a long-term investor and buy and hold. Weekly/monthly trades hardly ever yield the same returns as just buying and holding. Buy AMD/Nvidia today and say you won't check the stock again until 2025...at which point you'll probably be able to buy a car or even a house from your returns... depending on how much you invest. Anyone that bought $5,000 of AMD @ $5 in 2016 and committed to holding it for 4 years has $65,000 today.
 
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Irata

Posts: 810   +1,139
TechSpot Elite
Intel's conference call was an absolute disaster! The stock dropped nearly 20% in today...its worst one-day performance in its HISTORY. When Bob Swan said 7nm might be delayed by up to one year and they might have to outsource their manufacturing, analysts went ballistic on him! Bob Swan needs to go back to being a CFO, he's terrible as a CEO. Intel seriously needs new leadership, the past few years have been a complete train wreck. Look what Lisa Su did to AMD in the past 5 years, a complete 180 turn around and AMD stock has reached an all time high today.
Hey, Intel did a 360 degree turn around - that‘s twice as much.
 
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Evernessince

Posts: 5,339   +5,814
We're lucky AMD is competitive again. Before Zen I thought AMD was going to release just an ok architecture and Intel was going to string them along for 10 years again with little innovation. Then again, if that had happened ARM would have likely exceeded X86 at some point.
 

wiyosaya

Posts: 5,363   +3,444
Yeah. 7nm AMD vs 14nm Intel. Twice the nanometers!
Hey, quiet, please! sIntel does not need any more marketing ideas! :laughing:

Personally, I have funds invested in FSDAX It has done very well, long-term.
We're lucky AMD is competitive again. Before Zen I thought AMD was going to release just an ok architecture and Intel was going to string them along for 10 years again with little innovation. Then again, if that had happened ARM would have likely exceeded X86 at some point.
As I see it, sIntel may not be telling us the whole story. If they have any sense at all, they are aware that there are significant security problems with their current procs, and they are aware that AMD is wiping the floor with them at this time - especially in the workstation/enterprise/HPC markets.

I would not at all be surprised if sIntel is hunkered down, have locked their processor design team in secret room somewhere with commands that they cannot come out until they have exceeded AMD's current design, and that they are aggressively trying to out design AMD. After all, if it were just 7nm they were going after, the market would eat them up for yet anther die shrink, IMO.
 
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scavengerspc

Posts: 529   +368
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In early 2016 when the Zen rumors were looking good I bought a ton of AMD stock. I picked it up for an average of $2.53 over 2 months. I am up 2327%. The second I hear verified news that a better architecture for Intel CPU's is coming I'm selling them all.
 
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zamroni111

Posts: 93   +40
Intel's conference call was an absolute disaster! The stock dropped nearly 20% in today...its worst one-day performance in its HISTORY. When Bob Swan said 7nm might be delayed by up to one year and they might have to outsource their manufacturing, analysts went ballistic on him! Bob Swan needs to go back to being a CFO, he's terrible as a CEO. Intel seriously needs new leadership, the past few years have been a complete train wreck. Look what Lisa Su did to AMD in the past 5 years, a complete 180 turn around and AMD stock has reached an all time high today.
Lisa su is technical person while bob swan is finance guy.
Intel can be the next tech company self destroyed by non technical ceo
 

Gypsygib

Posts: 77   +60
Sweet, serves Intel right for releasing the same CPU for 5 years and artificially limiting hyper-threading. Now they should do the same with GPUs.