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
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.Â
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.Â
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.Â
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.Â
 (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.Â
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