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AMD surpassed rival Intel’s market cap on Friday.
AMD shares rose more than 3% on the day, giving the chipmaker a market capitalization of $153 billion. Intel fell nearly 9%, a day after disastrous earnings that missed profit expectations and showed declining revenue. Intel’s market capitalization was $148 billion at the close of trading on Friday.
The change is mostly symbolic, but it means a much more competitive PC and server chip market, where the two companies compete head-on.
The milestone also suggests that investors may value an asset-light chipmaker over one that invests heavily in manufacturing. AMD outsources production to external “factories” or chip factories, while Intel said it plans to continue building and operating factories.
In recent years, AMD chips have become much more competitive with Intel products in terms of performance, even surpassing their speed and efficiency for some applications.
Intel said Thursday that its disappointing report reflected execution issues and cut its full-year earnings per share forecast from $2.30 to $3.60. Intel also blamed a slowing PC market and macroeconomic conditions for its slip.
Intel CEO Pat Gelsinger compared the company’s comeback strategy to climbing Mount Kilimanjaro in an interview with CNBC on Friday.
AMD reports its fiscal second-quarter earnings on Tuesday, when investors will be watching to see if it faces the same macroeconomic challenges as Intel as PC sales decline worldwide.
Correction: The original headline of this story incorrectly stated that this is the first time AMD has surpassed Intel in market cap. In fact, this happened before in February 2022.
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