Home NewsStock Market News Asset-light operation strategy is popular, AMD’s market value surpasses Intel’s |

Asset-light operation strategy is popular, AMD’s market value surpasses Intel’s |

by WOOWinvest
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Asset-light operation strategy is popular, AMD’s market value surpasses Intel’s |


AMD (AMD-US) shares rose more than 3% on Friday (29th), and its market value surpassed that of rival Intel (INTC-US), which means that the competition in the PC and server chip market is more intense. In addition, investors also pay more attention to management Asset-light fabs, not fabs that invest heavily in manufacturing.

AMD closed up $2.80, or 3.05%, at $94.47 a share, rising after the session, giving it a market value of $153 billion.

A day earlier, Intel’s shares fell nearly 9% on Friday to close at $36.31 per share due to worse-than-expected earnings and a drop in revenue. As of Friday’s close, Intel’s market value was $148 billion.

It’s a symbolic shift, but it means more competition in the PC and server chip markets, where the two companies compete directly.

In addition, the milestone also shows that investors are more interested in operating asset-light fabs rather than investing heavily in manufacturing. AMD outsources production to outside fabs or chip factories, but Intel has said it plans to continue building and operating factories.

AMD chips have been able to compete more with Intel’s products in performance in recent years, and even surpass Intel’s speed and efficiency in some applications.

Intel said Thursday that its disappointing earnings mainly reflected execution issues, as well as a slowing PC market and macro conditions, and cut its full-year earnings per share (EPS) to $2.3 from $3.6.

AMD will report second-quarter earnings after the market close on Tuesday, and investors will be watching to see if the company suffers from the same macroeconomic challenges as peer Intel, amid global PC sales.

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