AMD shares closed up more than 3 percent on Friday, with a market value of $153 billion. Intel shares fell nearly 9 percent, with a market value of $ 148 billion. The day before, Intel announced less-than-expected second-quarter earnings, and significantly lowered its earnings guidance.
The shift is largely symbolic, but it marks an increasingly competitive PC and server chip market.
The milestone also suggests that investors may value an asset-light chipmaker more than one that invests heavily in manufacturing. AMD outsources production to external “fabs” or chip factories, while Intel has said it plans to continue building and operating factories.
In recent years, AMD’s chips have become more competitive with Intel in terms of performance, even surpassing the latter’s speed and efficiency in certain applications.
Intel said Thursday that the disappointing earnings report reflected execution problems and was blamed on a slowing PC market and macroeconomic conditions.
Intel CEO Pat Gelsinger likened the company’s comeback strategy to climbing Mount Kilimanjaro in an interview Friday.
AMD will report its fiscal second-quarter earnings next Tuesday, and investors will be watching closely to see if it faces the same macroeconomic challenges as Intel.