Investors are advised to consider buying Intel and Amazon over AMD due to better valuation

From Nasdaq: 2024-06-18 05:15:00

Chip stocks, including AMD, have surged due to the AI industry boom. AMD’s stock has seen a 28% increase since last June, outperforming the S&P 500. However, when comparing valuation metrics, Intel and Amazon offer better value than AMD, making them attractive AI stock options with long-term potential and growth opportunities.

Intel is rebounding from a recent slump and is poised for recovery. The company’s $100 billion investment in chip manufacturing plants in the U.S., backed by federal grants and loans, is promising for its AI potential. With plans to become the largest AI chip manufacturing site globally by 2027, Intel could see significant earnings growth.

Amazon’s AWS cloud platform has established a strong foothold in the AI industry, making it a top AI stock contender. The company’s P/S ratio of approximately 3, coupled with its e-commerce gains and doubling cash flow, positions Amazon as an enticing investment option. With significant investments in expanding its cloud capacity globally, Amazon’s AI capabilities offer a diverse range of growth opportunities.



Read more at Nasdaq: Forget AMD: 2 Artificial Intelligence (AI) Stocks to Buy Instead