AMD inc. outperforms Intel in market value!
Advanced Micro Devices Inc. shares soared this week, as the company’s market value reached $188 billion –amid Wall Street’s growing optimism about the chipmaker’s prospects
AMD’s current market capitalization has soared from less than $125 billion earlier this year!
*Bloomberg chart on AMD & INTEL shares
Intel Corp., which fell 1 % last, is currently valued at $182 billion. AMD first closed with a larger market cap than Intel on the same week!
Bernstein consultancy upgraded AMD to outperform, saying valuation has become increasingly attractive after approaching its cheapest in five years. This is the first time the firm has been bullish on the stock in almost a decade.
The stock has been on a high roll recently, supported by a strong quarterly report and forecast, as well as the closing of its acquisition of Xilinx Inc.
Intel, on the other hand, has long underperformed its peers in the semiconductor sector.
Last week, it hosted an investor event where it detailed a strategy to regain its industry dominance and gave a 4 year forecast.
Analysts were skeptical on the update, seeing a number of uncertainties and risks associated with the plan, and noting that it will be an expensive and long-term process!
As a long term perspective the semiconductor industry invested heavily in expansion of their production, as chip demands is at all time high due to demand from many industries, the latest is that many automotive manufacturer halted their production due to lack of chips!
