If one goes down, another goes up, and if Intel is bleeding to death and the value of its shares has fallen by more than 16 percent, because AMD’s shares are rising like foam, specifically 15.28 percent at the moment of the newsroom.
The reason is more than evident, and it is not only limited to the 7nm delay, and is that after this delay AMD has ended up positioning itself as the undisputed leader of the x86 architecture. This implies not only that it will lead the industry for many years in terms of performance or consumption, but that the increase in market share will be aggravated at the cost of a badly wounded Intel that has no weapons to fight with.
This at the investment level means a lot of money, and now AMD is postulated as a safe investment and future bet, while Intel is the opposite.
Quarter after quarter announcing record earnings, but … where has that money gone? Money, and time, is what investors and analysts may be asking themselves since the company has even come to admit that it will not recover its technological leadership until 5nm, but of course, AMD would already be close to 5nm at the end of this year while that Intel will not do the same with the 7nm until the beginning of 2023 or the end of 2022 at best.
Intel still has a bullet in the chamber, and it is to turn to TSMC or Samsung to carry out their projects. In other words, depending on an external smelter like AMD does and forgetting about its factories, which are a black hole of absorbing money and generating delays. This cannot be ruled out, because if things continue downhill for Intel, it will be the only way for the company to stay afloat. What’s more, you have to remember the rumors that Intel would restructure to move to fabless design like AMD.
At the time of writing, Intel shares are down 16.23% and put the value of each share at $ 50.60, below the $ 68.67 worth of each AMD share, which is experiencing growth in 14.99 percent. The 7nm delay has only accelerated this inevitable movement, so there is no need to take credit for AMD.