Comparing stocks in a certain sector, particularly tech stocks like AMD (NASDAQ:AMD) and Intel (NASDAQ:INTC), can get challenging to say the very least. Recently, Bank of America took on just such a topic, and what it revealed might surprise you. Both AMD and Intel stocks were down fractionally in Friday afternoon’s trading.
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The word from Bank of America analyst Vivek Arya makes it clear: AMD is the favorite over Intel at the investment bank. The biggest reason is AMD’s acquisition of Xlinix, which will give AMD a leg up not only in the industrial market but also in the automotive market. Arya acknowledges that there’s trouble in both the PC and the data center space thanks to declining corporate spending and reduced consumer spending as well. However, AMD is likely to come out ahead thanks to Xlinix, as mentioned previously, but also to other new products like its Genoa server graphics processor.
Indeed, AMD has several major new releases in the pipeline; two new Radeon Pro graphics cards just hit recently, and that’s just for starters. Sure, Intel isn’t exactly a laggard in terms of new products coming up. It’s got several new processors coming up and recently teamed up with Arm for system-on-a-chip (SoC) processes. But AMD looks to have quite a bit coming out that’s likely to give it an edge on several fronts—including servers—for some time to come.
A look at the two stocks shows why Bank of America favors AMD. AMD is a Strong Buy in analyst consensus, while Intel is a Hold. In addition, with an average price target of $98.08, AMD offers 7.29% upside. Intel stock, meanwhile, has an average price target of $28.78, which gives it a downside risk of 9.64%.
