AMD Value Gets Closer to $190 Billion, Climbing Back Above Intel

(Bloomberg) — A rally in Advanced Micro Devices Inc. shares pushed the company’s market value above $188 billion on Tuesday, amid Wall Street’s growing optimism about the chipmaker’s prospects.

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Shares of AMD gained 1.6% Tuesday, outperforming the Philadelphia Stock Exchange Semiconductor Index, which fell 0.8%. Stocks were broadly lower on Tuesday as investors monitored the situation between Russia and Ukraine.

AMD’s current market capitalization has soared from less than $125 billion earlier this year. Intel Corp., which fell 0.8% on Tuesday, is currently valued at $182 billion. AMD first closed with a larger market cap than Intel last week.

Tuesday’s advance came after Bernstein upgraded AMD to outperform, saying valuation has become increasingly attractive after approaching its cheapest in five years. This is the first time the firm has been bullish on the stock in almost a decade, with the analysts referring to their caution as “the biggest missed call of our Wall Street tenure.”

The stock has been on a tear in recent weeks, supported by a strong quarterly report and forecast, as well as the closing of its acquisition of Xilinx Inc.

Intel, on the other hand, has long underperformed its peers in the semiconductor sector. Last week, it hosted an investor event where it detailed a strategy designed to regain its industry dominance and gave a forecast. Analysts were skeptical on the update, seeing a number of uncertainties and risks associated with the plan, and noting that it will be an expensive and long-term process.