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First In History, AMD Overthrew Intel

Jakarta

Fate AMD changed since they released their first processor that uses the architecture Zen in 2017, and now for the first time in history, AMD’s valuation can overtake Intel.

AMD’s skyrocketing valuation occurred after they acquired Xilinx on Monday (14/2/2022) for USD 49 billion, 15 months after it was first announced, as quoted by detikINET from Techspot, Thursday (17/2/2022).

This is one of the largest tech company acquisitions in history, falling behind Dell’s $67 billion acquisition of EMC, and Microsoft’s $68.7 billion acquisition of Activision Blizzard.

In the Xilinx acquisition, each Xilinx shareholder received 1.7234 AMD shares for every 1 share they owned, which changed 248.38 million Xilinx shares into 428 million AMD shares.

As a result, the number of AMD shares increased to 1.628 million shares from the previous 1.2 billion shares, and AMD’s valuation skyrocketed to USD 197.75 billion, while Intel’s valuation at the same time was USD 197.24 billion.

Even so, currently Intel still dominates the market share of x86 processors in the market, with a market share of 75%. Then Intel is still generating revenue and profits per year greater than AMD.

But for AMD, this is still an achievement, considering that about six years ago they almost went bankrupt. Precisely when they just released the revolutionary Zen architecture.

With the acquisition of Xilinx, which is an FPGA manufacturer, AMD’s portfolio will certainly grow and expand their product diversification into other areas such as autonomous car systems, aviation, 5G, IoT, and others.

Xilinx is also a healthy company, with revenue per last quarter reaching USD 1 billion, up 26% year over year.

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(asj / fyk)

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