While several stocks of chips had convincing performances in 2024, Intelligence(NASDAQ: INTC) and Advanced micro devices(NASDAQ: AMD) They were not among them. The Intel section fell about 60% last year, while AMD shares reduced about 18%.
Let’s examine what supplies of the semiconductor looks like a better candidate for the 2025 jump.
The semiconductor market is largely managed by Artificial intelligence (AI)Intel and AMD were mostly later. AMD is a remote designer number 2 Graphic Processing Units (GPU) Behind the market leader Nvidia. In the meantime, Intel’s market share of GPU fell to zero, although it was not far away, and the company had only 2% of the market share of PC graphics cards 2023.
AMD fought against Nvidia, mainly because of its inferior software. In a recent study, half AMDs called AMD’s GPUs outside the GPU frame “unusable” for AI training, noting that there are more “more teams of AMD engineers” to help repair software errors. However, AMD managed to cut a niche in the AI conclusion, and the semi-Ajaniza said that its customers usually use AMD GPU for narrow, well-defined cases of use of conclusion.
Nevertheless, AMD managed to see the strong growth of the data center, although it is not almost the same as Nvidia. In the last quarter, the revenues from the Data Center recorded an increase of 122% of the year and 25% in a row to $ 3.5 billion. The company also attacked its instinct GPU -ai EPYC Central Processing Unit (CPU) for Selling Sale.
The CPU -I act as a computer’s brain, while GPUs have a superior processing power. Although there is a lot of well -deserved attention to the GPU, AMD jumped well on the CPU market, noting that the share of the CPU server market, while also working well on the computer market.
Overall, AMD noted that the Q3 revenue increased by $ 18% to $ 6.8 billion, and the custom EPS jumps 31% to $ 0.92. So, the company is still growing nicely despite the insertion of shares.
Intel, on the other hand, recorded a drop in revenue in the last quarter by $ 6% to $ 13.3 billion, and the custom EPS converted to a loss of -0.46 USD compared to $ 0.41 a year ago. One bright video in the last quarter was its data center and AI segment, which recorded an increase in revenue of $ 9% to $ 3.3 billion. However, compared to Nvidia and AMD, it is a very modest gain in this segment.
Meanwhile, his largest segment, Client Computing, noted that his revenue was reduced by $ 7% to $ 7.3 billion. By comparison, AMD noted that the revenue from the client segment on an increase of 29% in the last quarter at $ 1.9 billion, which shows that he appears at Intel’s primary business with PC.
Perhaps the Intel’s biggest trouble stems from his segment of the foundry, which was a great withdrawal of his results. The company put money into this job through capital expenditures (Capex), making new production facilities. However, the segment is consistently a large loser of money, including a $ 5.8 billion operational loss report in the last quarter, or $ 2.7 billion, when they are excluded not -Kahat.
After the release of his Pat Gelsinger director, Intel said he could look to be removed into his meadow job. The company recently received $ 7.86 billion in direct funding and 25% of the tax loan from the Government to continue to build its production imprint in the United States
From the perspective of evaluation, Intel is a cheaper stock, trades forward the price and earning ratio (P/E) of 12.6 times compared to 17.6 times for AMD.
However, if you appreciate Intel’s fundamental business and her meadow job separately, his evaluation is even more attractive.
Intel -O’s meadow job has lost a lot of money, but it also has a lot of physical assets. Intel spent $ 68.5 billion in Capex, mostly on Livno, from the end of 2021 and has $ 104 billion in physical assets in its balance sheet. If you only take his recent Capex consumption, you take away your net debt of $ 26 billion, his biovral job would be worth about $ 10 per share at 4.3 billion shares. Also owns 88% of the share in Mobilewhich is worth about $ 11.4 billion, or $ 2.66 according to Intel’s section.
As such, it is not surprising that the company was the subject of a rumor about the takeover. There is a lot of hidden physical assets that are not reflected in its share price, not to mention directly the financing of the Government and the incentive for taxes.
In the meantime, AMD was certainly stronger than two companies, although he did not gain the respect of the investors he could earn. If more AI infrastructure turns to AI conclusion, it could be in a good place. In the meantime, investors should not neglect their CPU job, which has acquired a share and in data centers and in PCS.
This year I love both supplies as a reversal candidate. I like Intel more about the deep value that I think is still in stock. However, AMD also looks like a solid jump candidate. Fortunately, investors do not have to choose and they can add both supplies to their portfolio if they decide.
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Geoffrey Seiler There is no position in any of the shares mentioned. Motley Fool has positions and recommends advanced micro devices, Intel and Nvidia. Motley Fool recommends the following options: short February 2025. $ 27 calls to Intel. Motley Fool has disclosure rules.
