AMD's Marketcap is now double the marketcap of Intel | Hacker News Reader

AMD's Marketcap is now double the marketcap of Intel

companiesmarketcap.com

29 pointsAbuAssar17 comments

Intel

  P/E: 31.67
  Profit Margin: 7.36%
  Revenue: 55.24B
  Quarterly Revenue Growth (yoy):  8.60%
  EBITDA: 10.5B
  Total Cash: 21.31B
  Total Debt: 52.45B
  Total Debt/Equity: 47.36%

AMD

  P/E:  241.10  
  Profit Margin: 4.90%
  Revenue: 22.8B
  Quarterly Revenue Growth (yoy) 2.20%:
  EBITDA: 3.84B
  Total Cash: 6.03B
  Total Debt: 3B
  Total Debt/Equity: 5.34%

Main differences.

AMD is fabless competes directly with Nvidia, Apple, Qualcomm, ... etc for fab capacity. Intel can supply has own manufacturing capacity. Must also spend heavily. Will get closer to TSMC over time.

That’s one incredibly high P/E for AMD. Is 241.10 correct?

The numbers look more favorable for Intel. Let’s see if they can turn it around

My gut also feels me that intel is currently somewhat undervalued. The times where their CPUs were beaten left and right by AMD are long over. And their fabs give them a heavy strategic advantage over them - especially now that geopolitical tensions are high. Of course neither am I an oracle, nor is the market rational. But this seems off

I tend to agree, but I realize after losing money in Intel stock, that their manufacturing business is a huge risk, and that keeps price down. They have to spend many billions to build even a single fab. They have to fund those investments and the factories may not work!

(not my opinion) AMD has an AI story, Intel hasn't.

Where's AMD's AI story? The whole AI market right now is almost exclusively Nvidia(CUDA) dominated.

I think even Apple and Google have more AI HW in the wild than either Intel and AMD who only just launched SoCs with NPUs and their GPUs aren't really used much in mass market AI training.

Why do you discount Gaudi 3? It looks like a very strong offering.

Agree. I've personally invested some money in Intel because I'm bullish on their new fab sites approaching TSMC (and potential higher tensions in Taiwan), they are currently profitable, and I expect the trend to increase reliance on American-soil built fabs. Their P/E is also low relative to their peers.

Of course, just one guy's opinion, I haven't beat the SP500 with my history of individual stock picks.

The high market cap explains it I think. The stock is popular but price doesn't reflect the underlying metrics.

AI hype effect rubbing off from nVidia. Although Intel's Gaudi GPUs are probably just as competitive as AMDs, if not more.

And also there's Nvidia now at $2.8 trillion market cap, over 20x more than Intel.

Another 14% stock price increase, and Nvidia is the world's most valuable company.

as of today 29th of May 2024:

AMD's Market cap: $277.37 Billion

Intel's Market cap: $132.21 Billion

So how do you explain your claim being in so much contrast to the data that is easily checked and supplied by the @nabla9 comment?

Stock price is a bet on the future: - intel: uncertain future for their X86 business lines. AMD caught up and even overtook Intel in desktop, laptop and SERVER. Extremely high Capex on Fab business with uncertain outcome. Can they really compete with TSMC, Samsung, etc? No real AI growth story to tell, (yet).

- AMD: took the X86 crown from Intel in some areas. Also suffers from big threat of ARM processors. The bet with AMD is that they will be able to compete with NVIDIA to become a major GPU provider in the AI boom.

Market cap isn't a claim its a calculated figure, same as the data in nabla9's comment. This also doesn't contrast that as the market cap vs actual revenue is reflected in the high P/E ratio AMD has in that comment.

It is a claim unless there's a clear definition how is being calculated. And I don't see any besides the website saying "according to sources of our data"?

Still, I don't understand how you could have double the marketcap but actually doing ~2x worse than what you compare against. I find it a bit puzzling.

Did you google "market cap"? Market Cap=Price Per Share×Shares Outstanding

That's it, its a clear and simple definition.

Price per share is driven by investor SENTIMENT. The disconnect between revenue and PPS is reflected in the P/E ratio.

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