Make a note of the date, 22nd February 2022. That was the day AMD’s market capitalisation – essentially, its overall value as a company – surpassed Intel’s for the first time. It was nothing less than a spectacular reversal in fortunes for a company that had been on the very brink just a few years earlier. Forget wondering whether AMD can even survive, it is now an entirely legitimate question to ask whether AMD can overturn Intel’s dominance of the PC. Truly, AMD has become the pretender to Intel’s throne.
Of course, stock prices don’t tell you everything about a company’s real-world proportions. Intel still has a 75 percent market share for PC processors and generates massively more revenue and profit than AMD. But the notion of AMD as the usurper of Intel’s position as the predominant purveyor of PC processors and platform technology is now more plausible than ever. How, exactly, did AMD turn it around? Now that’s a question. As we’ll see, a little bit of luck didn’t hurt. But as the saying goes, you make your own luck and there’s absolutely no denying the heightened competence and consistency with which AMD has been led since Lisa Su took over the company in 2014.
All told, AMD’s recovery from near oblivion makes for a fascinating story of corporate and technological rejuvenation. Undeniably intimate. Often symbiotic. And occasionally parasitic. Such has been AMD’s relationship over the decades with its greatest rival, Intel. Truly these are two companies with a shared destiny. The story of AMD begins way back in 1969. Inevitably, Intel looms large right from the start. AMD was founded by eight former employees of Fairchild Semiconductor and headed up by none other than Jerry Sanders, former marketing boss of Fairchild and the leading figure in AMD’s early years. It was only 12 months earlier that Robert Noyce and Gordon Moore also left Fairchild to set up... you guessed it, Intel.
Both companies set out to make an impact in the nascent integrated circuits business, otherwise known as computer chips. But from the start, they took different paths. Intel went heavy on the R&D to create its own designs, while AMD opted for the quicker and less expensive route to market by being a so-called second source supplier of microchips designed by Fairchild and National Semiconductor.
Second sourcing is all about securing reliable component supply and not depending on just one company. You can read how AMD went from a second source supplier of IBM-compatible CPUs to sharing full access to Intel’s all-important x86 instruction set later in this article. But suffice to say, by the early 1980s, AMD was carving out a niche as the leading alternative to Intel in the PC processor market.
Intriguingly, AMD was
