AMD is already beating Intel on the stock market

The slippage in Intel’s 7-nanometer production has benefited AMD’s share price, which could rise further in the near future, and the scissors between the two major chip makers are expected to widen even further.

This year is not really Intel’s year: is the first time that the rival, AMD, has outperformed Intel, and the gap only widened after Intel admitted to slipping for at least six months on the 7-nanometer production. So far, everyone has become accustomed to the image that, following Intel’s superior leadership, AMD is trying to catch up somewhat – from now on, the lineup can be rethought.

Intel’s latest financial report reported good results anyway, with second-quarter revenue up 20 percent. But the announcement that development anomalies will force the introduction of CPUs based on 7-nanometer technology for another half a year is a big embarrassment, which is especially embarrassing because the chip giant has been a year behind with this technology anyway. AMD, on the other hand, has “known” 7 nanometers since the Zen 2 architecture update – the latest series has been available in laptops since January and is now spreading to desktop PCs.

Unsurprisingly, following announcement that fundamentally questioned the reliability of Intel’s plans, the company’s stock price began to fall and AMD’s soared, now standing at $ 64.32, while Intel’s is only worth $ 54.

Of course, there is no question of a complete takeover for the time being, as if we look at market capitalization (i.e. multiplying the share price by the number of shares issued), AMD still lags far behind Intel, which has a market value of $ 249 billion, while AMD has $ 70 billion.

Although the coronavirus epidemic has had a devastating effect on many smaller businesses, large technology companies have generally benefited from this period due to the surge in demand for data centers, games and online shopping. And for AMD, the release of consumer Zen 3 this year, and for Nvidia, the upcoming RTX 3000 series (as well as ARM’s planned acquisition) will certainly add even more to the value of these companies ’shares.

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