Better Buy: Advanced Micro Devices vs. Intel
Advanced Micro Devices (NASDAQ: AMD) and Intel (NASDAQ: INTC) have been rivals for decades. During the PC era, Intel remained comfortably ahead of AMD. However, the decline of the PC set events in motion that eventually changed the dynamic for these semiconductor stocks. AMD appears to have pulled ahead of Intel in the technology race in many respects.
This has led investors to bid both the valuation and the stock price of AMD higher. Still, despite Intel's struggles, it offers investors a lower P/E ratio and remains a larger company. It also brings the potential for massive gains should Intel regain its leadership role in the chip sector. The question for investors now is whether AMD's fast growth or Intel's lower valuation holds more potential to deliver investor returns.
AMD's ascendancy may have taken almost 50 years, but its advancement has upended the chip industry. In 2015, AMD stock had fallen below $2 per share, and many investors assumed it would fall into bankruptcy.
Source Fool.com
