Intel Was Worth About 28 Times as Much as AMD 10 Years Ago. Now AMD Is Worth About 60% More.
2026-10-03 09:12
•Daniel Sparks •The Motley Fool
••••• ••• Axe Cap view
AMD's Rise Challenges Intel's Dominance, With Local Ripple Effects
AMD's market cap now outpaces Intel's by 60%, driven by superior manufacturing partnerships and market share gains.
A decade ago, Intel's dominance was unquestioned, trading at over 28 times AMD's value. Fast forward to 2026, and AMD has flipped that script—now worth about 60% more. The difference? AMD leaned heavily on Taiwan Semiconductor (TSMC), benefiting from cutting-edge 2nm process technology, while Intel struggled to scale its own foundry business. For South African investors, this global semiconductor tussle matters through USD/ZAR and tech-related counters. A stronger dollar often pressures the rand, impacting inflation and consumer spending. Also, the tech sector's health globally can influence appetite for riskier assets like Naspers and Prosus, both major foreign tech investors and income generators via Tencent. Intel's stock, trading at a lofty 57x 2027 earnings, suggests optimism about its turnaround, but with just 5% of foundry revenue from external customers, that remains a big 'if'. AMD is burning brighter now, but tech is cyclical; any slowdown in global chip demand could reset this narrative. this is just our opinion and not financial advice
We prefer Naspers and Prosus as proxies for global tech exposure, keeping an eye on USD/ZAR for currency risks. Avoid Intel for now given its stretched valuation and uncertain turnaround; consider AMD exposure via global funds if you can tolerate volatility.
- Naspers
- Prosus
- USD/ZAR
- Sudden weakness in global chip demand hitting AMD and tech-related stocks
- Rand volatility from USD strength affecting local investment returns
6/10
AMD's market value has surpassed Intel's by 60% as of 2026, a dramatic reversal from 2016 when Intel was worth 28 times more. AMD captured significant market share in server processors (34.5% vs 3.2% in 2018) by leveraging Taiwan Semiconductor's advanced manufacturing, while Intel struggled with its own foundry operations. Intel's turnaround depends on winning back external foundry customers, but currently only 5% of foundry revenue comes from outside clients, suggesting the turnaround remains incomplete despite recent operational improvements.
Our take is based on reporting first published by The Motley Fool.
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