US-based chipmaker AMD Inc. on Friday surpassed rival Intel Corp. in terms of market capitalisation. Shares of AMD settled 3.05 percent higher at $94.47 apiece in the last trading session, leading to a m-cap of $153 billion. On the other hand, shares of Intel declined nearly 9 percent to $36.31 apiece, giving the chipmaker a market cap of $148 billion.
Shares of Intel Corp tanked after the company missed estimates for second-quarter results as demand for its chips used in personal computers cooled-off.
While the shift is mostly symbolic, it represents a much more competitive market for PC and server chips, CNBC reported.
An asset-light chipmaker may also be valued over one that invests heavily in manufacturing, according to the milestone. Intel plans to continue building and operating factories, whereas AMD outsources production to outside "fabs," or chip factories, the report added.
Moneycontrol couldn't independently verify the report.
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, as per the report.
Intel said on Thursday that its disappointing report reflected execution issues and dropped its forecast for full-year earnings per share from $2.30 to $3.60. Intel also blamed a slowing PC market and macroeconomic conditions for its miss, the report added.
Intel CEO Pat Gelsinger compared the company’s comeback strategy to climbing Mount Kilimanjaro in an interview with CNBC on Friday.
AMD will report its second-quarter earnings on August 2, when investors will be watching to see if it is facing the same macroeconomic challenges as Intel as PC sales drop around the world.
Disclaimer: Moneycontrol could not independently confirm the news development
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