Yesterday, in just one day, AMD shares rose in price by more than 3%, providing the company with a market capitalization of $153 billion. At the same time, following the failed quarterly report Intel securities lost in price over 10%as a result of which the capitalization of this manufacturer decreased to $148 billion.
Image Source: amd.com
The reshuffle is more of a symbolic one, although it indicates increased competition between the two largest manufacturers of processors for PCs and servers. It also means that investors are betting on a player with less assets than a competitor, even though the competitor is investing heavily in manufacturing plants: AMD outsources chip production to third-party contractors, while Intel continues to run its own factories and build new ones.
AMD has been able to significantly increase the competitiveness of its products in recent years, which in some cases outperform Intel’s designs in both performance and power consumption. Intel, in turn, was forced to lower its annual earnings per share forecast from $2.30 to $3.60, and the company attributed weak financial results to a decline in the PC market and macroeconomic factors. Intel CEO Patrick Gelsinger in an interview CNBC compared the implementation of the company’s recovery strategy to climbing Mount Kilimanjaro.
AMD’s quarterly report is expected this coming Tuesday and will show how the company was affected by the same macroeconomic factors that led Intel to its first loss in many years.
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