Intel stock is as high as it was 15 years ago when they had total market domination. Now they are at the brink of collapse.
The market is way bigger today but still, I would take a dominant player over a failing one every day.
Another way to look at it: Intel market cap is 83B, AMD's market cap is 228B. Do you think Intel is expected to make 1/3 of the money AMD is going to make in coming decades? I see no reason to be as optimistic.
> Another way to look at it: Intel market cap is 83B, AMD's market cap is 228B. Do you think Intel is expected to make 1/3 of the money AMD is going to make in coming decades? I see no reason to be as optimistic.
Nit: market cap is not earnings. That's stock price * shares outstanding.
Intel's revenue is 54B to AMD 22B. If Intel's CPU division was spun off, I see little reason to believe AMD deserves a 3x premium to that - and you get IFS with Intel as well right now!
Granted, IFS is the millstone hanging around their neck right now, unless they can fix it.
Yeah but market cap is at least in theory about how much money a company is going to make in the future. Not this year, not the next year but decades is already pretty close (because of the discounting).
Another way to look at it: Intel market cap is 83B, AMD's market cap is 228B. Do you think Intel is expected to make 1/3 of the money AMD is going to make in coming decades? I see no reason to be as optimistic.