Comparison between Intel and AMD shows AMD as a better investment option for AI.

From Nasdaq: 2025-05-28 10:05:00

Intel and AMD are top semiconductor companies focusing on AI and advanced chip technologies. Intel is shifting from PC-centric to data-centric businesses, emphasizing AI and autonomous driving. AMD’s enterprise focus and Xilinx acquisition have expanded its market reach. Both companies are enhancing their semiconductor portfolios to stay competitive in AI across various sectors.

Intel is investing in manufacturing capacity for its IDM 2.0 strategy, offering AI processors like the Xeon 6 series. The company received $7.86 billion in funding for semiconductor projects. However, Intel faces challenges in China and lags in GPU and AI compared to NVIDIA and AMD.

AMD is strengthening its AI presence with the MI300 series accelerators and 7-nanometer processors. It competes with Intel in the commercial and server market but faces strong competition from NVIDIA in GPUs. AMD shows steady revenue growth, while Intel faces challenges. AMD seems to be a better investment option at present.

Intel’s 2025 sales may decline, but EPS is expected to grow by 323.1%. AMD’s 2025 sales are projected to grow by 23.3%, with EPS rising by 22.7%. Intel’s stock declined by 33.8% in the past year, while AMD lost 33.2%. Intel’s valuation is lower than AMD’s, making it more attractive.

Both Intel and AMD have a Zacks Rank #3. AMD shows better long-term growth potential with a 24.5% earnings growth expectation, compared to Intel’s 10.5%. AMD’s focus on AI and steady revenue growth makes it a better investment choice currently.



Read more at Nasdaq: Intel vs. Advanced Micro: Which Chipmaker is the Better Buy Now?