AMD vs. Intel: Which Is the Better AI Chip Stock to Own for the Next 3 Years Following the Semiconductor Crash?
AMD and Intel stocks have both seen major pullbacks in the past month.
The recent semiconductor crash has taken a significant toll on both Advanced Micro Devices (AMD) and Intel, with the former being one of the hardest-hit stocks. Despite this, AMD appears to be well-positioned for growth in the next three years, thanks to two powerful trends in AI and its new Helios rack solution. Helios is AMD's turnkey AI infrastructure system that integrates GPUs, CPUs, and networking components into a single, cost-effective unit.
This system is already being deployed to major customers like OpenAI, Meta Platforms, and Microsoft, and it could generate billions in revenue for AMD. Furthermore, AMD's server CPUs are experiencing high demand, with the company forecasting an 80% revenue surge in 2027. Intel, on the other hand, is grappling with a self-inflicted crisis due to its heavy reliance on the struggling PC market and weak demand for client computing.
Additionally, Intel's foundry business is hemorrhaging losses, and the company lacks a turnkey solution like AMD and Nvidia. As a result, Intel's stock is likely to underperform in the coming years, making AMD the better AI chip stock to own for the next three years following the semiconductor crash.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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