AMD surpassed competitor Intel’s market cap on Friday.
AMD shares were up more than 3% for the day, giving the chipmaker a market cap of $153 billion. Intel fell nearly 9%, a day after disastrous gains that missed earnings expectations and showed declining revenue. Intel’s market cap was $148 billion at the close of trading on Friday.
The shift is mostly symbolic, but it means a much more competitive market for PC and server chips, where the two companies compete directly with each other.
The milestone also suggests that investors may value a low-power chipmaker over one that invests heavily in manufacturing. AMD is outsourcing production to external “fabs” or chip factories, while Intel has said it plans to continue building and operating factories.
In recent years, AMD chips have become much more competitive with Intel’s products in terms of performance, even surpassing their speed and efficiency for some applications.
Intel said Thursday that the disappointing report reflected execution problems and lowered its full-year earnings per share forecast from $2.30 to $3.60. Intel also blamed a slowing PC market and macroeconomic conditions.
Intel CEO Pat Gelsinger compared the company’s comeback strategy to: climb Kilimanjaro in an interview with CNBC on Friday.
AMD will report its second-quarter fiscal results Tuesday, when investors will look to see if it faces the same macroeconomic challenges as Intel as PC sales around the world plummet.
Correction: The original headline of this story erroneously stated that it was the first time AMD had passed Intel by market cap. It happened even earlier in February 2022.