AMD beats Intel to the market value game

AMD has scored a notable win against its arch rival Intel.

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.

AMD has been winning the battle on Wall Street for better investment thesis.

AMD last week closed on its $35 billion acquisition for Xilinx.

The transaction — the largest in AMD’s 53-year history — gives the company significant expertise in the programmable chip market.

Intel responded to AMD of sorts by announcing the purchase of Tower Semiconductor for $5.4 billion.

The deal — which analysts see as less better than AMD’s Xilinx transaction — will aid Intel in its bid to build chips for other companies.

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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