You Maintain Utilizing That Phrase, I Do Not Suppose Means What You Suppose It Means
Intel’s fourth-quarter GAAP income was $20.5 billion, whereas AMD’s full 12 months 2021 income was $16.4 billion so the headline over at Slashdot appears a tiny bit exaggerated. It does comprise a grain of reality nonetheless, if you happen to contemplate the inventory market to symbolize the value of an organization. It appears unlikely that almost all of those that work at AMD suppose that manner, conversely nearly all of inventory holders actually do.
In the event you take a look at this by way of that one lens, then AMD’s $188 billion market cap is bigger than Intel’s $182 billion. These numbers will likely be in fixed flux however it’s true that by this measure AMD’s worth has surpassed Intel’s twice this week. The rationale for the inventory market’s valuation is pretty apparent, AMD’s gross sales rose 68% and it’s earnings by 117% over the course of 2021 whereas Intel’s grew by 2% and seven%, making AMD a somewhat enticing funding.
The acquisition of Xilinx additionally gave AMD’s value a severe bump, extra so than Intel’s buy of Tower Semiconductor which was value about 10% of AMD’s deal. Whatever the accuracy of the declare that AMD is value greater than Intel, that is excellent news for fanatics because it helps AMD compete in opposition to Intel and slightly competitors is simply what we have to maintain CPUs attention-grabbing.