AMD passes Intel as x86 processor market share hits new high

2022-06-01 0 By

On Valentine’s Day, Feb. 14, AMD officially announced its acquisition of Xilinx, a FPGA giant that, in addition to expanding its product line, directly pushed AMD’s market capitalization past that of rival Intel for the first time in history.AMD announced its acquisition of Sirens in October 2020 in an all-stock swap of 17,234 AMD shares for each Sirens share, worth about $35 billion at the time.Since then, AMD’s and Silas’s shares have risen and fallen in tandem, up about 70% and 80% respectively, and the total value of the deal has soared to $53 billion.Still, because no cash is involved, the blockbuster acquisition won’t put any debt pressure on AMD.AMD has issued 427 million shares to shareholders for a total of 1.643 billion shares, or $121.47 at the closing price of the day. The total market value is $19.58 billion.Intel was overtaken by AMD for the first time with a share price of $19.72 billion during the same period.In Mercury Research’s latest report on x86 processor market share for the fourth quarter of 2021, AMD’s share reached an all-time high of 25.6%.AMD has struggled for years to get back to the 25.3% market share it hit 15 years ago in 2006.Tom’s Hardware points out that AMD’s share gain in the quarter was largely due to AMD gaining share from Intel in the server market, while Intel gained share in desktop and notebook PCS.AMD, limited by capacity shortage, can only prioritize its limited capacity to ensure higher margin server products to ensure profitability.Despite capacity constraints, AMD posted its 11th consecutive quarter of server CPU growth, reaching a recent high of 10.7% market share.