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Despite being overshadowed by Chipzilla’s gigantic girth, AMD has finally pipped Intel in an overall market cap, making it the more valuable firm after a roaring 2021 in which AMD and Intel witnessed record sales and earnings. Although market capitalization changes are dependent on a company’s stock price, AMD has done so twice in the last week, reaching a valuation of $188 billion vs $182 billion for Intel. We didn’t expect to see a headline like “AMD worth more than Intel,” yet here we are.
The news of AMD’s unexpected increase in value comes from Yahoo Finance, which attributes the company’s gain to a number of recent events. The announcement that AMD has finally finalized its $35 billion acquisition of semiconductor Xilinx, which is the company’s largest acquisition to date, is perhaps the most valued. AMD’s cloud and data center product range is likely to benefit from the purchase in the future. Of course, Intel just made its own acquisition, announcing the purchase of Tower Semiconductor for $5.4 billion in order to expand its Intel Foundry Services (IFS) division’s capacity and services, although the combination will take some time to complete.
Perhaps the most important reason is that AMD has been putting out superior results for a long time, despite the fact that those numbers are less than Intel’s owing to the size difference. As previously reported, AMD ended 2021 with a 68 percent revenue rise year over year, but Intel only increased revenue by 1% last year, despite earning record income.
According to Yahoo, this pattern is likely to continue in 2022, as AMD expects a 31 percent gain in income, while Intel expects only a two percent increase. Intel is also putting truckloads of cash into new projects throughout the world, such as its new $20 billion fabs in Ohio, as it seeks to keep up with the surge in semiconductor demand. In the short run, Intel’s growth ambitions will almost certainly result in a $36 billion penalty as it ramps up manufacturing capacity in the hopes of averting a similar catastrophe in the future.
Overall, 2022 will be a watershed moment for both corporations, as their rivalry is already fierce. With its Alder Lake desktop CPUs, Intel has begun to retake the CPU performance crown from AMD, and the two firms are now prepared to compete with their newest mobile platforms, which both companies are now unveiling. According to at least one insider, Intel is already eroding AMD’s market dominance on the desktop side of the equation. According to Passmark, while the companies are relatively equal in the desktop industry, they are not even close in the laptop market, with Intel holding about 77 percent of the market compared to AMD’s 23 percent. It’s too early to say how much of a danger AMD’s new 6000 series mobile CPUs will pose to Intel, but early assessments suggest AMD has prioritized power efficiency above sheer horsepower.
Though AMD and Intel have long been rivals in the laptop and desktop area, the two firms will square off in the server space in 2022, as AMD prepares its highly anticipated Milan-X CPUs and future Zen 4 Genoa to compete with Intel’s impending Sapphire Rapids processors. This market is important to both firms for a variety of reasons, and Intel is hopeful that its next-generation CPUs will allow it to reclaim the server CPU performance crown from AMD, just as it did with Alder Lake on the desktop. Despite its bright financial prospects, AMD appears to have its hands full in 2022, according to on freshly released benchmarks comparing Milan-X against Sapphire Rapids.