Better Buy: AMD vs. Intel After Intel's Monster Run

Shares of AMD (AMD) and Intel (INTC) have rallied sharply recently on growing demand for AI chips. However, according to an analysis by Motley Fool, one of them appears to be a clearer buying opportunity at current price levels.

Rating Change

The analysis does not issue an explicit buy or sell recommendation, but suggests that Intel's strong recent performance may make it less attractive compared to AMD from a valuation perspective. AMD, on the other hand, is seen as having more room for growth.

Analyst's Rationale

The analysis focuses on both companies benefiting from the AI boom, but AMD may be more competitive in the data center chip market thanks to new products like the MI300X. Additionally, AMD's valuation is less stretched compared to Intel after its recent surge.

Context

This analysis comes after Intel's stock posted significant gains over the past months, pushing its price-to-earnings multiple higher. Meanwhile, AMD still faces challenges in gaining market share against dominant Nvidia (NVDA).

What We Conclude

Ultimately, the analyst sees AMD as the better option for investors seeking exposure to AI at a more moderate valuation, while Intel may suit those confident in its ability to sustain growth momentum.