Intel’s manufacturing capacity has been holding them back. If there next node is everything promised, it will at best have reached parity after many years, and

Intel’s manufacturing capacity has been holding them back. If there next node is everything promised, it will at best have reached parity after many years, and there’s plenty of reason to believe it will fall behind at least one of their fabbing competitors again. Also, it’s a massive risk. If, for whatever reason, there is a drop in chip demand (which is entirely possible with a global recession, which is looking increasingly likely) Intel will be burning billions keeping their manufacturing running. AMD, on the other hand, simply need to not place any more orders and offload the cost to TSMC and GlobalFoundries, etc. Also, dividends probably impact PE negatively. Big investors invest money in companies because they have done their research and believe those companies will do a better job with their money than other companies. The company giving them a dividend back simply means they need to figure out something else to do with that money, which logically should be to reinvest it in the same company (since it’s the one their research says will currently meet their objectives best). The dividend has simply added a lot of operational costs, and in many cases and in many cases taxes, for something that is completely unnecessary for them. Further, I suspect Intel is increasingly tying itself to the US, whereas AMD, while still heavily based in the U.S., isn’t doing that as much. If we do see a global technological schism, AMD will be able to straddle both sides in a way that Intel cannot.