AMD vs. Intel Inventory: Higher Semiconductor Turnaround Candidate

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Whereas a number of chip shares had convincing performances in 2024, Intel (NASDAQ: INTC) and Superior Micro Gadgets (NASDAQ: AMD) weren’t amongst them. Intel shares fell about 60% final yr, whereas AMD shares had been down about 18%.

Let’s study which semiconductor inventory seems to be like the higher rebound candidate in 2025.

In a semiconductor market largely being pushed by synthetic intelligence (AI), Intel and AMD have largely been afterthoughts. AMD is the distant No. 2 designer of graphic processing models (GPUs) behind market chief Nvidia. Intel’s market share in GPUs, in the meantime, has dropped to zero, though it wasn’t a far fall, with the corporate having only a 2% market share in PC graphics playing cards in 2023.

AMD has struggled in opposition to Nvidia, largely attributable to its inferior software program. In a current examine, SemiAnalysis known as AMD’s out-of-the-box GPUs “unusable” for AI coaching, noting it wanted “a number of groups of AMD engineers” to assist it repair software program bugs. Nonetheless, AMD has been in a position to carve out a distinct segment in AI inference, with SemiAnalysis saying its clients sometimes use AMD’s GPUs for slender, well-defined inference use circumstances.

Nonetheless, AMD has been in a position to see robust information middle progress, albeit not almost on the similar scale as Nvidia. Final quarter, it noticed its information middle income surge 122% yr over yr and 25% sequentially to $3.5 billion. The corporate credited each its Intuition GPUs and EPYC central processing models (CPUs) for the soar in gross sales.

CPUs act because the mind of a pc, whereas GPUs have superior processing energy. Whereas there’s loads of deserved consideration on GPUs, AMD has been doing a great soar within the CPU market, noting that it has been taking share within the CPU server market whereas it additionally has been doing properly within the PC market.

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Total, AMD noticed its Q3 income climb 18% to $6.8 billion and its adjusted EPS soar 31% to $0.92. So the corporate has nonetheless been rising properly regardless of the dip in its inventory worth.

Intel, alternatively, noticed its income decline final quarter by 6% to $13.3 billion, and its adjusted EPS flip to a lack of -$0.46 versus a revenue of $0.41 a yr in the past. The one brilliant spot final quarter was its information middle and AI phase, which noticed income rise 9% to $3.3 billion. Nonetheless, when in comparison with Nvidia and AMD, that may be a very modest acquire on this phase.

In the meantime, its largest phase, Shopper Computing, noticed its income drop 7% to $7.3 billion. By comparability, AMD noticed its Shopper phase income surge 29% final quarter to $1.9 billion, displaying it is making some inroads on Intel’s major PC enterprise.

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