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AMD's Market Cap Surpasses Intel for the First Time in History

AMD Xilinx
(Image credit: AMD)

AMD is now a bigger company, by market capitalization, than Intel. It may be close, but AMD has passed Intel for the first time in the company's history with a ~$197.75 billion market cap at the close of the market on February 15 compared to Intel's $197.24 billion. AMD's sudden market cap surge comes on the back of its blockbuster $49 billion acquisition of Xilinx, the largest semiconductor acquisition in history.

AMD's acquisition of Xilinx triggered the conversion of 248.38 million Xilinx shares into 428 million new AMD shares (a process that is ongoing). Added to AMD's existing 1.2 billion shares, that brings the company's overall share count to 1.628 million, giving AMD a market cap of $197.75 billion that squeaks past Intel by a mere $51 million. (There might be some variance in calculations from the various third parties, but all should place AMD in the lead over Intel at current stock valuations.) 

AMD Xilinx

(Image credit: AMD)

That marks a stark reversal for a company that was teetering on the brink of bankruptcy a mere six years ago when it first unveiled its revolutionary Zen CPU microarchitecture. Six years of relentless execution later, AMD now has an all-time high share of the CPU market, giving it the cash to ink the biggest semiconductor deal in history. 

However, we do have to remember that Intel is the larger company by far and commands ~75% of the overall x86 market share. Intel also generates far more revenue and profit per year than AMD and is coming off its sixth year of record revenue. That's not to mention that the firm makes its own chips and owns a global network of fabs, whereas AMD designs chips and outsources production.

Taken in context, AMD's valuation signals that the market generally has more optimism about the firm's growth prospects than Intel's. There are plenty of reasons to be bullish: AMD's recent acquisition of FPGA-maker Xilinx brings a broad portfolio of differentiated silicon products under the company's umbrella, opening up new, profitable climes like automated driving, aerospace, 5G/communications, and IoT markets, to name a few. 

Xilinx is a healthy company, too, as its recent 3Q earnings included a record quarterly revenue of $1 billion, a 26% increase year-over-year. Meanwhile, Intel's comparable unit, its Programmable Solutions Group (PSG) that sprung from its $16.7 billion Altera acquisition, has had more than its fair share of struggles over the last few years as Xilinx has eaten away at its market share. Intel also revealed during its last earnings call that its PSG unit has been abnormally impacted by supply constraints over the course of 2021, causing a predicted loss of $500 million in additional revenue.

Meanwhile, AMD is hitting the ground running with Xilinx — the company expects its first 'blended' products, meaning devices with both AMD and Xilinx logic, to come to market in 2023.

Times are good for AMD, it also surpassed Qualcomm on the market cap list, but Nvidia is also having a stellar run as well — the company's $662.38 billion market cap exceeds both AMD and Intel, combined.

AMD's new market cap is a far cry from July 2020 when the company's stock price surpassed Intel's for the first time in 15 years but it only had a market cap of $74 billion compared to Intel's $260 billion. Back then, Intel's stock was worth $61.57 compared to AMD's $61.79, but the picture is quite a bit different now with Intel's stock weighing in at $48.44 compared to AMD's $121.47.

Intel certainly isn't content to see its market share being whittled away and has shown signs of a comeback in the client market. Intel CEO Pat Gelsinger has also bet the future of the company on a new vision that includes producing chips for other firms via its IDM 2.0 strategy and has boosted the company's R&D spending to recent highs. We'll learn more about those efforts in a few days during Intel's investor event on February 17.

Paul Alcorn
Paul Alcorn

Paul Alcorn is the Deputy Managing Editor for Tom's Hardware US. He writes news and reviews on CPUs, storage and enterprise hardware.

  • DavidMV
    Yeah... one of those cases when Wall Street valuations don't match the real world at all.

    Intel 2021 Revenue: $79 Billion
    AMD 2021 Revenue: $16 Billion

    Intel 2021 Profit: $19.9 Billion
    AMD 2021 Profit: $3.2 Billion

    Intel Total Assets: $168 Billion
    AMD Total Assets: $12 Billion

    Intel x86 Desktop CPU Market Share: 84%
    AMD x86 Desktop CPU Market Share: 16%

    Intel x86 Laptop CPU Market Share: 78%
    AMD x86 Laptop CPU Market Share: 22%

    Intel x86 Server CPU Market Share: 89%
    AMD x86 Server CPU Market Share: 11%

    Intel has physical Fabs, AMD has none.
    Intel has a new GPU product line coming out to compete in a new market segment for them.

    I like AMD, but no way they should be valued higher than Intel.
    Reply
  • helper800
    DavidMV said:
    Yeah... one of those cases when Wall Street valuations don't match the real world at all.

    Intel 2021 Revenue: $79 Billion
    AMD 2021 Revenue: $16 Billion

    Intel 2021 Profit: $19.9 Billion
    AMD 2021 Profit: $3.2 Billion

    Intel Total Assets: $168 Billion
    AMD Total Assets: $12 Billion

    Intel x86 Desktop CPU Market Share: 84%
    AMD x86 Desktop CPU Market Share: 16%

    Intel x86 Laptop CPU Market Share: 78%
    AMD x86 Laptop CPU Market Share: 22%

    Intel x86 Server CPU Market Share: 89%
    AMD x86 Server CPU Market Share: 11%

    Intel has physical Fabs, AMD has none.
    Intel has a new GPU product line coming out to compete in a new market segment for them.

    I like AMD, but no way they should be valued higher than Intel.
    How much people value a company at has never been tied to their assets, revenue, profit, or even market share within their industry. Stock market valuation is how people "feel" a company is doing.
    Reply
  • Chrys
    helper800 said:
    How much people value a company at has never been tied to their assets, revenue, profit, or even market share within their industry. Stock market valuation is how people "feel" a company is doing.
    Tesla anyone?

    Yeah, the feels for value just hurts my head.
    Reply
  • TerryLaze
    helper800 said:
    How much people value a company at has never been tied to their assets, revenue, profit, or even market share within their industry. Stock market valuation is how people "feel" a company is doing.
    Both are existing options, people that do investing very much tie value to assets, revenue, and so on, they buy shares because they believe that the company will do even better in the future increasing the value of the share.
    People that do gambling go by "feels" or even pump up a share they bought cheaply to drop them on some fool at a multiple of what they payed for it, gamestop anyone?!
    Reply
  • -Fran-
    helper800 said:
    How much people value a company at has never been tied to their assets, revenue, profit, or even market share within their industry. Stock market valuation is how people "feel" a company is doing.
    While I don't disagree at a high level, the devil is always in the details.

    As pointed out in the article, most of what makes AMD valuable are their decisions and overall direction. Even if Intel is 10x the size of AMD and still makes about 10x of revenue, if the direction they're showing to investors is that of stagnation (not growing) or slowing down (slow growth), it will impact its valuation. Then there's the actual financial numbers and how they interpret all that data via projections; there's plenty scores companies get based on performance and trends in different markets they participate it vs their competition. It's stupid/strange for most of us, but that's how it goes.

    Regards,
    Reply
  • DavidMV
    AMD has been doing a lot a share buybacks recently and that raises the stock value too. Honestly, I don't think this is the time for AMD to take their foot off the gas, Intel seems to be waking up. They should have put that money into more R&D instead of stocks.
    Reply
  • korekan
    ah come on its a good news. otherwise if there is no competition the bigger manufacturer will keep the stagnant product flowing for awhile.
    Reply
  • Bazzy 505
    DavidMV said:
    Yeah... one of those cases when Wall Street valuations don't match the real world at all.

    Intel 2021 Revenue: $79 Billion
    AMD 2021 Revenue: $16 Billion

    Intel 2021 Profit: $19.9 Billion
    AMD 2021 Profit: $3.2 Billion

    Intel Total Assets: $168 Billion
    AMD Total Assets: $12 Billion

    Intel x86 Desktop CPU Market Share: 84%
    AMD x86 Desktop CPU Market Share: 16%

    Intel x86 Laptop CPU Market Share: 78%
    AMD x86 Laptop CPU Market Share: 22%

    Intel x86 Server CPU Market Share: 89%
    AMD x86 Server CPU Market Share: 11%

    Intel has physical Fabs, AMD has none.
    Intel has a new GPU product line coming out to compete in a new market segment for them.

    I like AMD, but no way they should be valued higher than Intel.

    My thoughts exactly.

    Let's just hope AMD didn't take a bite too big to swallow with Xillinx like it did 15 years ago with ATI. If you take a closer look at AMD balance sheet it looks like they might have. Back then it really ended AMD's winning streak which was very similar to success to they have had with Zen in the last few years.
    AMD has a tendency to think really big the moment they get out of red. The problem is market cap without assets backing them has a tendency to come and go. Blame it on wall street's never ending pump and dump schemes.

    Having said that i really hope AMD can keep their nose above the water this time. Whenever Intel competes with nobody but themselves, value for money for us customers tends take a deep dive. Whenever AMD gets more than 10% on server maketshare, Intel chipzilla wakes up and pulls a rabbit out of their hat, and we get 3 - 4 years of having 2 brands putting out great products at great prices.
    Reply
  • Jimbojan
    It is completely illogical that AMD has higher market value than Intel, it is the act of those analyst, it will be a fool to follow that theory. Just watch AMD to go down to oblivion as it has inferior products comparing to Intel's now.
    Reply
  • Rack1600
    DavidMV said:
    Yeah... one of those cases when Wall Street valuations don't match the real world at all.
    ...
    I like AMD, but no way they should be valued higher than Intel.
    Share value is based on buyer's perceived future value.
    Year-on-year increase in Revinue
    Intel:
    17-18: 12%
    18-19: 1.5%
    19-20: 8,2%
    20-21: 3,4%

    AMD:
    17-18: 23%
    18-19: 4%
    19-20: 45%
    20-21: 68%

    As you can see, AMD has found a major growth path - one that stock owners think can result in AMD being the same size as Intel. That's what it means - stocks go up based on potential future earnings.

    Anyone comparing AMD to Tesla needs a reality check. Tesla doesn't have the same market capital as one of it's main competitors (e.g. Toyota). It has the same market capital as all of it's competitors combined - which means that share-holders of Tesla must believe either:
    that Tesla can potentiall earn more than the entire car industry can today
    the Tesla share price is not bound by any sane measure of future value, and will still somehow increase in the future anyway
    Reply