Question Is it actually true that AMD is actually publicly valued at over 3X what Intel is??

[GunsMadeAmericaFree]

I saw a news article about AMD yesterday, and looked up the full public market value of both Intel and AMD. I thought that if AMD was doing really well, it might have a valuation of about 80% of Intel.

Imagine my surprise when some quick math showed that AMD had a public market value of about 3.5 times Intel.
How is this possible?

At least as far as I know, Intel still controls about 2/3 of the PC market. How in the world can AMD be priced so high, comparably?

 

[Tuna-Fish]

The market cap of AMD is a bit less than twice that of Intel, not 3.5 times (258B vs 134B).

Market values are never about today, they are what people expect to happen in the future. People expect that Intel will continue to lose market share, and that the problems they face in the future are greater than what's facing AMD. Some portion of this is that Intel hasn't really managed to climb on the AI hype train; even their own estimates for AI chip sales are lower than those of AMD, and analysts estimates of the differences in this opportunity between the companies are even greater.

 

[Ghostsonplanets]

I saw a news article about AMD yesterday, and looked up the full public market value of both Intel and AMD. I thought that if AMD was doing really well, it might have a valuation of about 80% of Intel.

Imagine my surprise when some quick math showed that AMD had a public market value of about 3.5 times Intel.
How is this possible?

At least as far as I know, Intel still controls about 2/3 of the PC market. How in the world can AMD be priced so high, comparably?

Market is based on current trends, extrapolated future trends and past history. Intel has been a failing story for 10 years, ever since 10nm problems became public. Coupled with the lack of consistent execution and rising of multiple competitors in multiple areas against Intel, it's no wonder market isn't bullish on the company.

Intel also missed on the whole AI bull train, having only Gaudi as something bigger than a footnote and market isn't convinced yet of the foundry push. You can argue Intel is undervalued, but it is what it is.

As for AMD, market is seeing that the company has had relentless execution since 2017, is growing, serving and capturing more and more areas, has been able to take advantage of the AI bull train and is expected to keep the excellent execution and products in the near future. AMD also doesn't has foundry baggage to hold back the company. So market is more bullish on them.

 

[mikegg]

As for AMD, market is seeing that the company has had relentless execution since 2017, is growing, serving and capturing more and more areas, has been able to take advantage of the AI bull train and is expected to keep the excellent execution and products in the near future. AMD also doesn't has foundry baggage to hold back the company. So market is more bullish on them.

Arguably, this could turn into a major advantage for Intel in the future if geopolitics continue to escalate.

 

[Saylick]

Arguably, this could turn into a major advantage for Intel in the future if geopolitics continue to escalate.

That's assuming Intel Foundry isn't spun off by then.

 

[mikegg]

That's assuming Intel Foundry isn't spun off by then.

They will certainly spin it off after it gains some revenue/momentum. Right now, Intel is keeping it together because it needs the volume from Intel chips to get off the ground.

 

[Harry_Wild]

I saw a news article about AMD yesterday, and looked up the full public market value of both Intel and AMD. I thought that if AMD was doing really well, it might have a valuation of about 80% of Intel.

Imagine my surprise when some quick math showed that AMD had a public market value of about 3.5 times Intel.
How is this possible?

At least as far as I know, Intel still controls about 2/3 of the PC market. How in the world can AMD be priced so high, comparably?

Intel is consider a failure in its own industry now!

Failed on foundry now at 7nm, on cutting edge e.g. Apple silicon M3, on GPU division, on AI in general. They always are trying to catch up to TSMC, AMD, NVidia, Apple, IBM, Tesla FSD and Chinese semi. Intel is years behind and maybe in some areas, a decade beyond in product offerings. All they do now is to play catch up game! AMD has eaten Intel lunch in the server marketplace. Microsoft has given up on Intel and went with Qualcomm for mobile device CPU technology that is fan-less.😵‍💫 AMD is working on a low wattage CPU for fanless Windows laptop too! I hate working on Windows laptop because of the fan noise. Alway go to MacBook Air for silent operation when I can! Intel is just a catch-up company know. They are stuck in the X86 CPU universe at 7nm! Intel once has a 90+% share in X86 CPUs is down to about 55% now. Intel CPUs now have very low profit margins because they are viewed as commodities now.