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AMD's Marketcap is now double the marketcap of Intel

29 points by AbuAssar 2y ago

AbuAssar 2y ago
as of today 29th of May 2024: AMD's Market cap: $277.37 Billion Intel's Market cap: $132.21 Billion
- menaerus 2y ago
  So how do you explain your claim being in so much contrast to the data that is easily checked and supplied by the @nabla9 comment?
  - florakel 2y ago
    Stock price is a bet on the future: - intel: uncertain future for their X86 business lines. AMD caught up and even overtook Intel in desktop, laptop and SERVER. Extremely high Capex on Fab business with uncertain outcome. Can they really compete with TSMC, Samsung, etc? No real AI growth story to tell, (yet). - AMD: took the X86 crown from Intel in some areas. Also suffers from big threat of ARM processors. The bet with AMD is that they will be able to compete with NVIDIA to become a major GPU provider in the AI boom.
  - hmmm-i-wonder 2y ago
    Market cap isn't a claim its a calculated figure, same as the data in nabla9's comment. This also doesn't contrast that as the market cap vs actual revenue is reflected in the high P/E ratio AMD has in that comment.
    - menaerus 2y ago
      It is a claim unless there's a clear definition how is being calculated. And I don't see any besides the website saying "according to sources of our data"? Still, I don't understand how you could have double the marketcap but actually doing ~2x worse than what you compare against. I find it a bit puzzling.
      - hmmm-i-wonder 2y ago
        Did you google "market cap"? Market Cap=Price Per Share×Shares Outstanding That's it, its a clear and simple definition. Price per share is driven by investor SENTIMENT. The disconnect between revenue and PPS is reflected in the P/E ratio.
nabla9 2y ago
Intel P/E: 31.67 Profit Margin: 7.36% Revenue: 55.24B Quarterly Revenue Growth (yoy): 8.60% EBITDA: 10.5B Total Cash: 21.31B Total Debt: 52.45B Total Debt/Equity: 47.36% AMD P/E: 241.10 Profit Margin: 4.90% Revenue: 22.8B Quarterly Revenue Growth (yoy) 2.20%: EBITDA: 3.84B Total Cash: 6.03B Total Debt: 3B Total Debt/Equity: 5.34% Main differences. AMD is fabless competes directly with Nvidia, Apple, Qualcomm, ... etc for fab capacity. Intel can supply has own manufacturing capacity. Must also spend heavily. Will get closer to TSMC over time.
- melling 2y ago
  That’s one incredibly high P/E for AMD. Is 241.10 correct? The numbers look more favorable for Intel. Let’s see if they can turn it around
  - deleted 2y ago
    [deleted]
  - bun_terminator 2y ago
    My gut also feels me that intel is currently somewhat undervalued. The times where their CPUs were beaten left and right by AMD are long over. And their fabs give them a heavy strategic advantage over them - especially now that geopolitical tensions are high. Of course neither am I an oracle, nor is the market rational. But this seems off
    - pwarner 2y ago
      I tend to agree, but I realize after losing money in Intel stock, that their manufacturing business is a huge risk, and that keeps price down. They have to spend many billions to build even a single fab. They have to fund those investments and the factories may not work!
    - KingOfCoders 2y ago
      (not my opinion) AMD has an AI story, Intel hasn't.
pavlov 2y ago
And also there's Nvidia now at $2.8 trillion market cap, over 20x more than Intel. Another 14% stock price increase, and Nvidia is the world's most valuable company.
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29 points by AbuAssar 2y ago

AbuAssar 2y ago

as of today 29th of May 2024: AMD's Market cap: $277.37 Billion Intel's Market cap: $132.21 Billion

menaerus 2y ago
So how do you explain your claim being in so much contrast to the data that is easily checked and supplied by the @nabla9 comment?
- florakel 2y ago
  Stock price is a bet on the future: - intel: uncertain future for their X86 business lines. AMD caught up and even overtook Intel in desktop, laptop and SERVER. Extremely high Capex on Fab business with uncertain outcome. Can they really compete with TSMC, Samsung, etc? No real AI growth story to tell, (yet). - AMD: took the X86 crown from Intel in some areas. Also suffers from big threat of ARM processors. The bet with AMD is that they will be able to compete with NVIDIA to become a major GPU provider in the AI boom.
- hmmm-i-wonder 2y ago
  Market cap isn't a claim its a calculated figure, same as the data in nabla9's comment. This also doesn't contrast that as the market cap vs actual revenue is reflected in the high P/E ratio AMD has in that comment.
  - menaerus 2y ago
    It is a claim unless there's a clear definition how is being calculated. And I don't see any besides the website saying "according to sources of our data"? Still, I don't understand how you could have double the marketcap but actually doing ~2x worse than what you compare against. I find it a bit puzzling.
    - hmmm-i-wonder 2y ago
      Did you google "market cap"? Market Cap=Price Per Share×Shares Outstanding That's it, its a clear and simple definition. Price per share is driven by investor SENTIMENT. The disconnect between revenue and PPS is reflected in the P/E ratio.

nabla9 2y ago

Intel P/E: 31.67 Profit Margin: 7.36% Revenue: 55.24B Quarterly Revenue Growth (yoy): 8.60% EBITDA: 10.5B Total Cash: 21.31B Total Debt: 52.45B Total Debt/Equity: 47.36% AMD P/E: 241.10 Profit Margin: 4.90% Revenue: 22.8B Quarterly Revenue Growth (yoy) 2.20%: EBITDA: 3.84B Total Cash: 6.03B Total Debt: 3B Total Debt/Equity: 5.34% Main differences. AMD is fabless competes directly with Nvidia, Apple, Qualcomm, ... etc for fab capacity. Intel can supply has own manufacturing capacity. Must also spend heavily. Will get closer to TSMC over time.

melling 2y ago
That’s one incredibly high P/E for AMD. Is 241.10 correct? The numbers look more favorable for Intel. Let’s see if they can turn it around
- deleted 2y ago
  [deleted]
- bun_terminator 2y ago
  My gut also feels me that intel is currently somewhat undervalued. The times where their CPUs were beaten left and right by AMD are long over. And their fabs give them a heavy strategic advantage over them - especially now that geopolitical tensions are high. Of course neither am I an oracle, nor is the market rational. But this seems off
  - pwarner 2y ago
    I tend to agree, but I realize after losing money in Intel stock, that their manufacturing business is a huge risk, and that keeps price down. They have to spend many billions to build even a single fab. They have to fund those investments and the factories may not work!
  - KingOfCoders 2y ago
    (not my opinion) AMD has an AI story, Intel hasn't.

pavlov 2y ago

And also there's Nvidia now at $2.8 trillion market cap, over 20x more than Intel. Another 14% stock price increase, and Nvidia is the world's most valuable company.

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