In the relentless battle for dominance in the semiconductor world, Intel Corp (NASDAQ:INTC) and Advanced Micro Devices, Inc. (NASDAQ:AMD) present a compelling contrast.
Intel is fighting to regain its footing, while AMD continues to ride the wave of AI-driven momentum. But which stock is the better bet right now?
Intel: Qualcomm Takeover Talks, Apollo's $5 Billion Vote Of Confidence
Intel has faced a harsh market reality, with its stock plunging 33.48% in the past year and 52.28% year to date.
Yet, behind this sharp decline, Apollo Global Management Inc's (NYSE:APO) potential $5 billion investment in the chipmaker signals a possible turnaround for the company.
However, nothing is set in stone, and talks remain fluid. Intel's broader narrative has also caught the attention of Qualcomm Inc (NASDAQ:QCOM), which is exploring an acquisition—a deal that could shake up the entire sector.
Intel's stock shows mixed signals.
Chart created using Benzinga Pro
Despite recent buying pressure, its price of $22.81 hovers above its eight- and 20-day simple moving averages, giving bullish indicators. However, it's under the 50- and 200-day averages, marking a longer-term bearish trend.
Analysts have a wide price target range of $17 to $42, reflecting uncertainty about Intel's recovery prospects, though the average target of $29.50 suggests potential upside.
Read Also: What's Going On With Intel Stock?
AMD: Jim Cramer Flags Concerns Despite AI Surge
On the flip side, AMD stock surged 62.58% over the past year and is up 14.24% year to date, largely driven by its competitive stance in AI, second only to Nvidia Corp.
Despite its positive momentum in data centers, gaming, and EPYC server processors, Jim Cramer recently pointed out that, "After a roller coaster year, AMD, one of our favorite chipmakers and a core holding in my travel trust, is basically flat for 2024... something's wrong here."
The stock is down $50 from its spring peak, raising questions about whether the exuberance surrounding AI has cooled off.
Yet, technically, AMD's stock remains strong.
Chart created using Benzinga Pro
Its share price of $158.33 is above all key moving averages (eight, 20, 50-day), signaling a bullish trend. However, the stock trades below its 200-day SMA, prompting some caution.
Analysts estimate a price target range of $156 to $250, with an average of $203, reflecting bullish sentiment for AMD's future, particularly as AI continues to dominate headlines.
The Verdict
For investors looking for a high-risk, high-reward play, Intel's potential deals with Apollo and Qualcomm offer a speculative bet on a turnaround.
On the other hand, AMD's strong fundamentals and AI-driven growth make it the more stable choice, though recent stock volatility should not be ignored.
In this showdown, Intel represents a bet on a comeback, while AMD remains a powerhouse in AI with some near-term questions.
- Stock Of The Day: Why Qualcomm Stock Remains Stuck In A Range As Speculation Of Intel Takeover Grows
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