It’s hard to believe that AMD’s market cap has come perilously close to Intel. Intel’s market penetration is magnitudes higher than that of AMD, on top of that Intel has its own fab. We have all seen how fab has become a national security issue. Do you believe that intel has been punished for lack of innovation in prior years, but is ready to break away with stocks gaining tremendously? TC: 410k
Intel is a huge steam ship which headed in wrong direction for 5 years… it will take time to course correct. Market has recognized that in the past year.
The similar market cap is because Intel is written off as dead while AMD has a P/E multiple that requires non-stop astronomical earnings growth to maintain. The risk for an investor is that Intel will take a margin hit and start a price war with Sapphire Rapids, likely a reasonably competitive product. Anything that slows AMD's growth narrative will collapse the sky high multiples. As a disclosure I hold positions in AMD as well as other similar high P/E companies like TSLA and NVDA. One less than stellar quarterly guidance and it's all over. Even inflation or higher interest rates could crush these high duration growth stocks which derive present value from distant future cash flows.
Sapphire Rapids is using the Intel7 process which used to be called 10nm process. This is compatible with the tsmc 7nm tech. I believe AMD will come up with their next gen chip using tsmc 5nm process in 2022. I am not sure whether Intel can be competitive. Maybe amd folks can comment 😀
sapphire rapids is already dead. go look at the size of the cpu core. it will not scale to match AMD socket core counts, not even close.
Intel’s fab can be a double edge sword. If it has the cutting edge technology, then it definitely is a huge plus. However if the process tech is lagging like current situation, it is a huge burden to carry and money sucking machine.
Strange why nobody from Intel is replying here 🤔
Intel is sinking ship.