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.
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