AMD or Intel: 1 Chip Stock Is the Clear Winner
It's really not close.
Advanced Micro Devices (AMD) and Intel, two leading semiconductor companies, are thriving in the artificial intelligence (AI) revolution. AMD's shares have surged 158% this year, while Intel's have grown 69%, as of the time of writing. Both firms have posted impressive financial results, but one stock appears to be the better buy.
Intel reported a 21% year-over-year increase in revenue for Q3, reaching $16.5 billion. Its non-GAAP net earnings per share (EPS) reached $0.52, up 126% year-over-year. AI segment generated $7.3 billion in revenue, up 78% year-over-year. Intel expects Q4 revenue of $15.5 billion, a 13% year-over-year increase. AMD, on the other hand, reported a 45% year-over-year increase in revenue to $13.4 billion.
Gross profit increased 51% to $7.2 billion, with a 54% gross margin. AI segment generated $8.5 billion in revenue, up 97% year-over-year. AMD's fourth-quarter revenue guidance of $17 billion represents a 66% year-over-year growth. AMD's EPS grew 74% year-over-year to $2.09. The company's data center segment performed well, with $8.5 billion in revenue, up 97% from the prior-year quarter.
So, AMD appears to be the stronger buy right now, with better financial results, outlook, and valuation.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
