Intel plummeted roughly 9% a day after dismal reports that failed to meet profit estimates and revealed shrinking revenue. The market capitalization of Intel was $148 billion at the close of trading on Friday.
AMD PC and Server Chips
This change is primarily symbolic, but it indicates a much more competitive market for PC and server chips, where the two businesses compete directly.
The achievement also implies that investors may choose a chipmaker with little assets over one that invests extensively in manufacturing. Intel has stated that it intends to continue building and operating plants, whereas AMD outsources production to external “fabs,” or semiconductor factories.
In recent years, AMD CPUs have become significantly more competitive with Intel’s products in terms of performance, in some cases even surpassing their speed and efficiency.
Intel stated on Thursday that its disappointing report was the result of execution challenges and lowered its full-year EPS outlook from $2.30 to $3.50. Intel reportedly attributed its loss to a sluggish PC market and macroeconomic factors.
In an interview with CNBC on Friday, Intel CEO Pat Gelsinger compared the company’s turnaround approach to climbing Mount Kilimanjaro.
On Tuesday, AMD will publish its fiscal second-quarter earnings, and investors will be watching to see if the company is facing the same macroeconomic issues as Intel as global PC sales decline.