3 ms·

Intel's $20 billion profit is quite a bit higher than AMDs entire revenue. The idea that amd's growth opportunities and Intels failures are so assured that amd

Intel's $20 billion profit is quite a bit higher than AMDs entire revenue. The idea that amd's growth opportunities and Intels failures are so assured that amd should be worth more than Intel is laughable.

klelatti 5y ago
Profit isn’t the only measure - ROC is also highly relevant for companies with billions in CapEx. You can make a ton of profit with a low ROC and you will deservedly get a low valuation. In any event no one is saying anything is assured only that some things are more likely or risky than others. Intel has a lot to do and recent execution has been weak. You may think that will change but the market will need evidence. AMD on the other hand is in the opposite position and gets credit for that. Also you may think it’s laughable but there is no should about it - it’s a statement of fact that AMD’s market cap is more than Intel’s and that fact also plays to AMD’s advantage in some ways (acquisitions for example).
- deleted 5y ago
  [deleted]
- Osiris 5y ago
  Can you expand the ROC acronym for people that are unfamiliar?
  - klelatti 5y ago
    Sorry - Return on Capital. The point being that Intel can make huge profits but if that all has to be reinvested into new fabs and the market is sceptical of the return on that investment then they won't get much credit for those profits.
  - acover 5y ago
    Return on capital Profits/capital
mistrial9 5y ago
utterly off-topic but to my mind, Intel is a criminal monopolist, and has been proven so in court multiple times. Perhaps the chickens are coming home to roost?
- seanp2k2 5y ago
  Counterpoint: Comcast