Intel tops Cisco in market value
The chipmaker claims the title of top dog in the technology world after passing networking giant Cisco Systems in market capitalization.
Chipmaker Intel has a market capitalization of $413 billion based on today's closing price of the company's shares, compared with a market cap of $385 billion for networking giant Cisco Systems.
Intel passed Cisco in market capitalization yesterday, and extended the lead today. Intel shares closed up 75 cents at $123.94, while Cisco fell $2.63 to $55.38.
Intel announced yesterday that it will split its shares 2-for-1, effective July 30 for shareholders on record as of July 2. The company's board of directors will raise its quarterly post-split dividend from 1.5 cents a share to 2 cents a share.
Market capitalization is not the only measure of a company's financial might, but it can be a source of bragging rights for executives and employees.
"With respect to the current valuation, Intel seems to be the only megacap technology name that's a safe bet in the current market environment," said Ashok Kumar, an analyst at Piper Jaffray who covers Intel.
Although the chipmaker's shares have dipped about 14 percent since March, they have surged more than 110 percent in the past year. By comparison, Cisco is up 91 percent from a year ago, and the Nasdaq composite index is up 39 percent.
The two tech giants surpassed Microsoft, whose shares have fallen sharply because of investor concern about its antitrust lawsuit. Microsoft shares closed down $1.50 at $66.19, well off of its 52-week high of $119.93.
However, the tech companies are all chasing General Electric, which recently reclaimed its title as king of market capitalization from Microsoft. GE, which closed down 50 cents at $53.13, has a market cap $524 billion.