Advanced Micro Devices (AMD) and Intel are two names of chip manufacturers from the United States who have long been rivals in the world processor (CPU) market. there are still several ranks of companies that make processors, including Huawei with Pangu, even though it uses the ARM architecture, it is predicted to be able to beat Core i9-9900K in some scenarios.
Intel has dominated the world CPU market for many years so that it appears to be a bigger company than AMD, including in terms of market capitalization. However, that changed in February 2022. Because, for the first time in history, AMD managed to surpass Intel’s market capitalization. This was boosted by AMD’s recent acquisition of chip company Xilinx.
AMD has a market capitalization of 197.75 billion US dollars. While Intel in the same report is said to have a market capitalization of 197.24 billion US dollars. Although the difference is small, AMD still has a bigger market cap than Intel. This achievement surpassed Intel for the first time in terms of market cap AMD had achieved after 52 years of its presence in the world CPU market.
AMD’s achievement is a positive response to the company’s corporate action in acquiring Xilinx, a FPGA (field-programmable gate array) chip manufacturer. The value of AMD’s purchase of Xilinx is reported to reach 49 billion US dollars. This is the largest acquisition in the history of a semiconductor company. AMD’s acquisition of Xilinx triggered the conversion of 248.38 million Xilinx shares to 428 million new AMD shares. When combined with AMD’s shares already outstanding in the market, AMD’s shares totaled 1.628 billion shares.
In general, the acquisition of Xilinx and the increase in AMD’s market cap is said to be able to create a bullish market condition, because investors in the market are optimistic about AMD’s future growth prospects, compared to Intel. Bullish itself is a term that refers to when investors are optimistic or to describe market conditions that are experiencing an uptrend or strengthening.