What happened now? AMD has once again outperformed its CPU (and upcoming GPU) rival Intel in terms of market cap. The companies switched positions after Intel reported a very difficult quarter in which the company lost half a billion dollars. In the meantime, AMD will report its second quarter earnings tomorrow (Tuesday, August 2) when it is expected to confirm strong three-month growth.
This is not the first time AMD has outperformed Intel in terms of market capitalization. This happened in February when the Red team completely took over Xilinx for $49 billion, increasing its market cap to $197.75 billion, surpassing Intel’s $197.24 billion by $51 million.
AMD managed to outperform Intel by only a few weeks before Chipzilla became a more valuable company again. But everything changed after the failure of Intel. quarterly report which announced a 22% year-on-year decline in revenue of $15.3 billion and a net loss of $454 million, representing a 109% year-on-year drop. Intel blamed the disappointing numbers on the same factors as all the faltering tech companies. are pointing in: The economy is teetering on the brink of recession, falling demand after the lockdown boom and conservative consumer spending.
Intel’s shares fell nearly $5 to $36 after the release of the report, dropping its market capitalization to $148.47 billion at the time of writing.
While AMD isn’t set to reveal its quarterly results until tomorrow, the company is expected to reverse the bleak trend with strong gains. Analysts are forecasting revenue of $6.5 billion, up 70% from the previous year. And while its shares have fallen significantly since the beginning of the year – something that virtually every company faces – the price has risen 28.7% over the past month, bringing AMD’s market cap to $153.09 billion, almost $5 billion more than at Intel.
Market capitalization is calculated by multiplying the price of a share by the total number of shares of a company outstanding. They are mostly symbolic, but can help illustrate the current state of the firm.
Intel still dominates the processor market. Last Poll on Steam shows that its processors are installed on 68.47% of the computers of participants, but AMD has been reducing this share for many years thanks to the introduction of the Zen architecture in 2017. Given the launch of Zen 4 and Raptor Lake later this year, this will be interesting. to watch the upcoming battle between these tech titans.
Intel also announced in its financial report that it is closing its Optane memory business, ending development of its 3D Xpoint technology, and selling off its drone business.
Credit: www.techspot.com /