The two biggest players in computer processor manufacturing. Which would you buy? AMD seems like the better "deal" but Intel is the bigger and more stable company.
I have both in my holdings. The answer depends on your risk tolerance and time horizon. For me, $INTC is a safe dividend return. There are some concerns over a declining PC market. The forays into phones and tablets is slower than I like. However the IoT (Internet of Things) has potential. It is the gorilla in the chip room, and I still occasionally add to my holdings on dips to ~$28. Nor terribly exciting, but initially in at ~$21 and automatic dividend reinvestment. $AMD is a small risk investment for me, looking for a bounce toward ~$5. The large price plunge a few weeks ago was due to a cut in earnings statement. Once a player in the PC processor chip business, its current push seems to be towards graphics gaming chips. The last rumor was $MSFT, but I am not betting on that horse. Underwater a bit at the moment but I can afford to wait it out. Seeking Alpha and StockTwits occasionally have interesting articles and comments, but you need to do your own DD. Lots of pump-and-dump nonsense floating around in the markets these days, as exemplified by the $TWTR sale rumor (quickly denied by Bloomberg as being the source) that caused the share price to spike 8% for a few minutes just before Noon today. I called out someone on StockTwits yesterday. He stated $F (among other stocks) would be "fun" when $BBRY rose over $8. Looking at his profile containing his other posts, all was revealed. All $BBRY all the time. HTH. YMMV.
From the two, INTC is currently way ahead - profits, analysts and valuations. AMD is cheaper for a reason - its bleeding money. Both do not have great growth prospects though.
I stay away from non-growth tech stocks. Investing in tech companies means you are buying into the risk that ´your´ tech doesn´t go the way of the cassette tape. And with Intel, there simply is not a high enough growth rate to justify that risk. AMD actually has the better product right now, but the company is a mess so it doesn´t seem like they will be able to capitalize on share price before the next chip cycle.
$AMD had a few tough days this week. On Friday closing in after hours trading at $1.79 attracts attention. I'm still rereading the StockTwits and Seeking Alpha writings while looking at valuation numbers. My impulse is just to pick another 1,000 share and roll the dice, but my common sense says not so fast. Cant yet tell if it is short squeeze or if a buyout is afoot. If speculation is in your risk tolerance wheelhouse, .Any others looking at this possible play?
