You Keep Using That Word, I Do Not Think Means What You Think It Means
Intel’s fourth-quarter GAAP revenue was $20.5 billion, while AMD’s full year 2021 revenue was $16.4 billion so the headline over at Slashdot seems a tiny bit exaggerated. It does contain a grain of truth however, if you consider the stock market to represent the worth of a company. It seems unlikely that the majority of those who work at AMD think that way, conversely the majority of stock holders certainly do.
If you look at this through that one lens, then AMD’s $188 billion market cap is larger than Intel’s $182 billion. Those numbers will be in constant flux but it is true that by this measure AMD’s value has surpassed Intel’s twice this week. The reason for the stock market’s valuation is fairly obvious, AMD’s sales rose 68% and it’s profits by 117% over the course of 2021 while Intel’s grew by 2% and 7%, making AMD a rather attractive investment.
The acquisition of Xilinx also gave AMD’s worth a serious bump, more so than Intel’s purchase of Tower Semiconductor which was worth about 10% of AMD’s deal. Regardless of the accuracy of the claim that AMD is worth more than Intel, this is good news for enthusiasts as it helps AMD compete against Intel and a little competition is just what we need to keep CPUs interesting.
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.