AMD stock rose over 3% for the day, giving the chipmaker market capitalization of $153 billion. Intel fell nearly 9%, each day after disastrous earnings that missed expectations for profit and showed declining revenue. Intel’s market cap was $148 billion by the end of trading on Friday.
The shift is mainly symbolic, nonetheless it signifies an infinitely more competitive market for PC and server chips, where in fact the two companies compete directly.
The milestone also shows that investors may value an asset-light chipmaker over one that’s investing heavily in manufacturing. AMD outsources production to outside “fabs,” or chip factories, whereas Intel has said it plans to keep building and operating plants.
Recently, AMD chips have grown to be a lot more competitive with Intel’s products when it comes to performance, even surpassing their speed and efficiency for a few applications.
Intel said on Thursday that its disappointing report reflected execution issues and dropped its forecast for full-year earnings per share from $2.30 to $3.60. Intel also blamed a slowing PC market and macroeconomic conditions because of its miss.
Intel CEO Pat Gelsinger compared the business’s comeback technique to climbing Mount Kilimanjaro within an interview with CNBC on Friday.
AMD reports fiscal second-quarter earnings on Tuesday, when investors will undoubtedly be watching to see if it’s facing exactly the same macroeconomic challenges as Intel as PC sales drop all over the world.
Correction: The initial headline to the story mistakenly stated that it had been the very first time AMD had passed Intel in market cap. Actually, it just happened before in Feb. 2022.