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AMD overtakes Intel in market capitalization for the first time

AMD is already, in market capitalization, a bigger company than Intel. By little, but after closing the purchase of Xilinx, the largest of a semiconductor company, AMD reached at the close of the trading session on February 15 a market capitalization value around 197,750 million of dollars. Meanwhile, according to Tom’s Hardware, Intel closed earlier that day with a market capitalization of $197.24 billion.

The Xilinx purchase triggered the conversion of 248.38 million of its shares into 428 million new AMD shares. If these are added to the 1.2 billion shares it already had in circulation, it brings AMD’s current total shares to 1.628 million. Without a doubt, a very important step for a company that only six years ago was going through many problems, and that now has an increasingly high share of the CPU market.

However, Intel is still a bigger company than AMD, and by far. It currently has around 75% of the x86 chip market share. In addition, it generates more revenue and profit per year than AMD, and has just posted record figures for the sixth year in a row. In addition, it manufactures its own chips and owns a worldwide network of manufacturing plants. Meanwhile, AMD designs chips but outsources their production.

Of course, in context, AMD’s assessment shows that the market is generally more optimistic about its growth and prospects than about Intel’s. There are many reasons for this: the purchase of Xilinx will give it a new portfolio of differentiated chips, which will open up new market segments for it. These include automated driving, the aerospace sector, communications, 5G and the Internet of Things market.

Xilinx, as a company, is in good health, with its latest earnings release revealing quarterly revenue of $1 billion, up 26% year over year. As for Intel’s Programmable Solutions Group, which was born from its purchase of Altera a few years ago for 16.7 billion dollars, it has gone through several problems in recent years, as Xilinx has been eating it little by little. its market share.

In addition, as Intel confirmed in the latest communication with the company’s shareholders, it has been disproportionately affected by the supply problems that occurred in 2021, which has caused said division to have a loss of 500 million in income.

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