Intel Has a Massive Warning for AMD Stock Investors. Is It Time to Book Profits Before Nov. 3?
Key PointsThe decline in PC shipments led to weaker-than-expected guidance from Intel.
Intel (INTC -28.58%) reported a significant drop in its third-quarter results on October 29, causing its stock to plummet by over 28% the next day. The culprit behind the share price decline was Intel's guidance, which fell short of Wall Street's expectations. While Intel projected a strong year-over-year increase in both revenue and earnings, the reality was less impressive.
In contrast, Advanced Micro Devices (AMD -10.88%) showcased a healthy 23% year-over-year revenue growth from client central processing unit (CPU) sales for PCs. Intel's client computing segment revenue, however, saw a 5% year-over-year decline to $8.1 billion, with poor PC sales cited as the primary reason. AMD's client CPU business could face near-term challenges, with AMD's stock up 90% over the past year, prompting investors to consider taking profits.
Despite Intel's PC decline, AMD's market share gains in server CPUs and anticipated price increases could bolster its data center business. Investors should monitor AMD's Q3 earnings report on November 3 closely, as a potential decline could present a buying opportunity due to AMD's strong growth potential and attractive valuation.
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