Chipmakers are gaining a lot of attention amid the ongoing artificial intelligence (AI) wave. While Nvidia (NVDA) quickly captured the robust demand for advanced chips required in building AI models, other semiconductor companies are either gradually catching up or are comparatively lagging in innovation. Moreover, chipmakers are looking to capture demand in other attractive end markets like automotive. Bearing that in mind, we used TipRanks’ Stock Comparison Tool to place Intel (INTC), Advanced Micro Devices (AMD), and Qualcomm (QCOM) against each other to pick the chip stock with the highest upside potential, according to analysts.
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Intel (NASDAQ:INTC)
Intel shares plunged by more than 60% in 2024, marking the worst year for the company since it went public in 1971. The decline reflects investors’ concerns over the lack of innovation, product delays, strategic missteps, and failed turnaround efforts under the leadership of Pat Gelsinger, who resigned in December 2024.
Moreover, investors are disappointed that Intel has not been able to capitalize on the generative AI boom, unlike players like Nvidia. The company is trying to restore investor confidence by reducing costs, streamlining operations, strengthening its manufacturing and foundry capabilities, and enhancing its product offerings. However, the stock market seems to be skeptical due to Intel’s poor track record when it comes to execution.
Is Intel a Buy, Hold, or Sell?
Last Month, Citi analyst Christopher Danely reiterated a Hold rating on Intel stock with a price target of $22. The analyst is sidelined on the stock due to several factors, including worries related to the company’s strategic direction and leadership, especially the ongoing search for a new CEO.
Danely is also concerned about the company’s foundry business and thinks that exiting this segment could improve Intel’s financial performance and boost its stock’s value.
Wall Street has a Hold consensus rating on TipRanks, backed by 21 Holds, five Sells, and one Buy recommendation. The average INTC stock price target of $24.53 implies 19.3% upside potential.
Advanced Micro Devices (NASDAQ:AMD)
Advanced Micro Devices shares have declined 7.4% over the past year. The company has not been able to capture the opportunities in the AI chips market to the extent that rival Nvidia has done. Further, challenges in the company’s gaming and embedded segments have been weighing on its overall performance.
Nevertheless, AMD remains confident about robust growth in the AI space in the times ahead. While the Q4 guidance lagged expectations, the company raised the estimate for the full-year sales from its AI-accelerators to more than $5 billion from $4.5 billion. Following a 122% rise in data center revenue in Q3, CEO Lisa Su said the company still sees a lot of demand from cloud providers and other companies to build AI infrastructure.
Is AMD Stock a Buy or Sell?
Northland analyst Gus Richard reiterated a Buy rating on AMD stock and a price target of $175. The analyst said that AMD is one of the Top Picks of his firm for 2025. Richard expects AMD to continue to gain share in AI GPUs, server CPUs, and the PC market as pressures in the embedded and gaming segments fade. Notably, Richard expects the PC refresh cycle to be much stronger than expected. Richard sees more upside in 2025 than risks.
Overall, AMD scores a Moderate Buy consensus rating based on 23 Buys and eight Hold recommendations. The average AMD stock price target of $184.52 implies 47.2% upside potential.
Qualcomm (NASDAQ:QCOM)
Qualcomm shares have advanced by about 15% over the past year. The company is a key chip supplier to smartphone makers. However, there are concerns about the impact on Qualcomm from the loss of business from Apple (AAPL) when the contract to supply modem chips for smartphones ends in 2026.
Nonetheless, Qualcomm is trying to bolster its business by diversifying into attractive areas like AI, IoT (Internet of Things), and automotive. The company is gaining traction in these key growth areas, with the automotive business delivering a 68% year-over-year revenue growth to $899 million in Q4 FY24.
Another favorable aspect is Qualcomm’s recent win against Arm Holdings (ARM). The jury ruled that Qualcomm did not breach its licensing agreement with Arm following the acquisition of startup Nuvia in 2021. The ruling addressed some concerns about the company’s expansion into the laptop market.
Is Qualcomm a Buy, Sell, or Hold?
Following the favorable ruling in the Arm Holdings case, KeyBanc analyst John Vinh reiterated a Hold rating on Qualcomm stock with a price target of $150. Despite this favorable news, Vinh remains sidelined on QCOM stock due to macro challenges and company-specific risks like the possibility of displacement of QCOM modems with Apple’s own internal modems and in-house “silicon verticalization” by mobile OEM (original equipment manufacturers) customers, implying that there is a threat that OEM clients could develop their own chips in the years ahead.
Vinh also noted intense rivalry in the mobile chipset market and maturing smartphone market growth.
With 11 Buys, 10 Holds, and one Sell recommendation, Qualcomm earns a Moderate Buy consensus rating. At $199.88, the average QCOM stock price target implies 26.6% upside potential.
Conclusion
Wall Street is optimistic on AMD and Qualcomm but sidelined on Intel due to the ongoing pressures. Currently, they see more upside potential in AMD stock than the other two chip stocks. Several analysts see the pullback in AMD stock as an opportunity to build a position and gain from the semiconductor giant’s growth potential in areas like AI.
