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AMD's share price has overtaken Intel for the first time in history

Intel's 7nm woes have seen AMD's value soar

AMD's share price has overtaken Intel for the first time in history

AMD's share price has overtaken Intel for the first time in history

It hasn't been a good day for Intel. Despite announcing huge profits for Q2 2020, the company's stock prices are tumbling, and that is because of the company's delayed 7nm manufacturing process, which the company reported as being 12 months behind schedule. 

Delaying 7nm will hamper Intel's entire product roadmap, pushing products back by at least six months. While this may not seem like a big deal to some, this delay will give Intel's rivals more opportunities to push ahead, making the company's market dominance a lot less certain. 

Thanks to Intel's long-delayed 10nm manufacturing, the company has allowed AMD to rise as a strong competitor in recent years. Thanks to Intel's delays at 7nm, AMD's share price has soared, as investors believe that Intel's loss will become AMD's gain in the years to come.

AMD relies on 3rd party foundries for their silicon fabrication, and TSMC, AMD's primary foundry partner, has proven to be highly reliable in recent years. With TSMC as their foundry partner, AMD is expected to transition to new process nodes on schedule, allowing them to shift to 5nm one year before Intel can deliver 7nm products. For context, TSMC's 5nm will offer similar levels of transistor density to Intel's 7nm node. 

Since the start of today, Intel's value has dropped by over 10%, and AMD's share price has risen by over 10%. This shift has allowed AMD's share price to rise above Intel's for the first time in the company's history. While Intel's market cap remains higher than AMDs, AMD's inflated share price should be more than enough to leave Intel worried. 

Before the end of the year, AMD is due to release its second generation of 7nm processors, releasing their Zen 3 architecture in the form of new Ryzen and EPYC processors. After that, AMD will be moving to TSMC's 5nm node, by which time Intel will be moving to 10nm with its desktop Alder Lake processors. 

AMD's share price has overtaken Intel for the first time in history  (Share Prices: Intel in Gray and AMD in Blue)


Right now, things look pretty bleak for Intel, and while the company will not collapse over this delay, it will almost certainly lose market share in the coming quarters to its rivals, be it to AMD or competing non-x86 processors.

Intel is no longer the undisputed leader of the CPU market, and with that will come a few rough quarters for the company, especially if Intel's competitors can continue executing their roadmaps on schedule. 

You can join the discussion on Intel's share price being overtaken by AMD on the OC3D Forums

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Most Recent Comments

24-07-2020, 10:06:55

Dark NighT
It just shows that short term gain and not planning for any problems and delay's can cost you the game entirely, and given intel's attitude as of late, they totally brought this on themselves. i didn't think it would be possible for AMD to overtake them but intel had been dropping the ball so hard, they made it so easy for AMD to do it.Quote

24-07-2020, 10:14:59

WYP
Quote:
Originally Posted by Dark NighT View Post
It just shows that short term gain and not planning for any problems and delay's can cost you the game entirely, and given intel's attitude as of late, they totally brought this on themselves. i didn't think it would be possible for AMD to overtake them but intel had been dropping the ball so hard, they made it so easy for AMD to do it.
Intel's market cap is still way ahead of AMD, it's just that Intel has more shares out there. Even so, allowing AMD to get a higher share price is bad news for Intel. This drop was years in the making.Quote

24-07-2020, 10:22:57

Dark NighT
Yeah they do have a boatload of money but if they keep screwing up like this it really doesn't matter to have such capital when no one really trusts them to deliver exciting new stuff untill they get their act together and sell good products without delay, nonsense or lacking features that are present on the competitor's side.Quote

24-07-2020, 11:28:43

NeverBackDown
Intel are still more trusted and still have more software and support for large companies which is where most of their money comes from. They have more experience and that is a large factor when companies are purchasing billions of dollars worth of hardware.

It's still why they maintain the vast majority of market share.

It'll be a long time before Intel falls. They'd need another 3-5 years at their current pace. They will likely turn it around by then.Quote

24-07-2020, 11:37:40

WYP
Quote:
Originally Posted by NeverBackDown View Post
Intel are still more trusted and still have more software and support for large companies which is where most of their money comes from. They have more experience and that is a large factor when companies are purchasing billions of dollars worth of hardware.

It's still why they maintain the vast majority of market share.

It'll be a long time before Intel falls. They'd need another 3-5 years at their current pace. They will likely turn it around by then.
Yeah, this is by no means a killer blow for Intel. It just sets them up for a few years where they will bleed market share. They just need to sort out their internal issues and address things before things get really bad, which will take years.Quote
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