For several consecutive months, AMD’s stock market value has outperformed Intel’s, but it wasn’t until its merger with Xilinx that the former overtook the second-biggest market cap. Under the terms of the deal, Xilinx shareholders received 1.7234 AMD shares for each share of the acquired company, and now Intel is slightly inferior to AMD in terms of capitalization.
This indicator is very conditional, and in practice Intel can still boast of both larger revenues and a larger workforce, but the capitalization to some extent allows assessing the level of investor confidence in the company, and now AMD has this parameter about $ 510 million higher than Intel. Yesterday AMD’s capitalization reached $197.75 billion, while the corresponding value in the case of Intel did not exceed $197.24 billion, in the summer of the year before last AMD’s capitalization reached just $74 billion and has been growing quite well since then. At the same time, Intel’s share price managed to fall from $61.57 to the current $48.44. Positive impulses for the price dynamics of Intel shares cannot be ruled out by the speech of the corporate management at an investor event that will take place in the second half of this week.
The Xilinx deal, which cost AMD no direct material costs but was valued at $49 billion, increased the company’s outstanding shares from 1.2 billion to 1.628 billion, and peaked at a current value of about $121 per share Share a capitalization that outperformed Intel. . After closing the Xilinx deal, AMD CEO Lisa Su expressed confidence that financial synergies can be generated through this structural change. She also stated that buying Xilinx won’t stop AMD from growing its revenue by an average of 20% or more annually.