From Nasdaq:

Advanced Micro Devices (AMD) and Intel have been rivals for decades, with the dynamics of the rivalry shifting as AMD gained a technical lead, taking market share from Intel. AMD’s stock dramatically outperformed Intel’s over the last five years, reflecting this shift. Intel’s new releases show it’s catching up, making the choice between the two challenging.

The recent CES 2024 didn’t reveal much about AMD and Intel’s competitive battle. Both companies remain locked in a competitive battle in the CPU and GPU space. It’s unclear how Intel’s move into the GPU niche will fare compared to AMD, which has focused on that area for years. Moreover, the production capabilities of the two companies significantly differ, posing another challenge in the comparison.

In terms of financials, AMD has been the growth leader, showing a gradual recovery in revenue and cash flow, while Intel suffered greater revenue declines and negative cash flow. However, with its investments in new fabs, Intel’s worst could be over, and AMD remains in a stronger financial position.

Conservative investors may consider AMD, which has shown a capacity for catching up or surpassing its competitors’ technology while being expected to benefit from chip demand. For the more speculative investor, Intel’s size advantage, significant clients, and efforts to improve its chips could bring higher returns given its low valuation.

The Motley Fool Stock Advisor analyst team did not include Advanced Micro Devices in the 10 stocks they identified as the best for investors to buy now. Stock Advisor provides guidance on building a portfolio and regular updates from analysts. While AMD has potential, it’s essential to consider other options before investing.



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