Advanced Micro Devices (AMD (NASDAQ:AMD)) has witnessed a significant increase in its stock value, outpacing Intel (NASDAQ:INTC)’s performance significantly. Over the past month, AMD’s shares have risen by 55%, while Intel only managed a 17% gain. This disparity in growth rates has left investors considering whether shifting their investments from Intel to AMD could be beneficial. Notably, both companies are benefiting from the AI infrastructure boom, yet their current narratives showcase different highlights and trajectories.
A glance at historical performance shows that despite AMD’s recent surge, Intel has had an edge year to date, with an increase of 205% compared to AMD’s 148%. This past trend highlights a more extensive market competition between the two tech giants, where each has its strategic moves to gain leverage in the fast-paced semiconductor market.
How is AI Driving AMD’s Growth?
In its recent earnings report for the first quarter of 2026, AMD announced revenues of $10.25 billion, marking a 38% increase from last year, while its data center revenue jumped by 57%. As Lisa Su, CEO of AMD, stated,
“Customer engagement around MI450 Series and Helios is strengthening, with leading customer forecasts exceeding our initial expectations.”
This growth is partly due to major commitments from Meta (NASDAQ:META) Platforms and OpenAI for AMD’s Instinct GPUs.
Looking forward, AMD’s guidance for the second quarter of 2026 indicates a potential revenue of $11.2 billion, suggesting a 46% year-over-year growth, coupled with a gross margin target of 56%. This swift expansion underlines AMD’s strengthened market position, supported by increasing demand in AI and data centers.
What Slow Steps Is Intel Taking?
Despite a slower pace compared to AMD, Intel is making strides with a 7% year-over-year increase in its Q1 2026 revenue, amounting to $13.58 billion. Intel’s data center and AI business also saw a 22% uplift, underscoring a continuous improvement in its core segments. CEO Lip-Bu Tan emphasizes Intel’s consistent progress through consecutive quarters of exceeding earnings projections, as he remarked,
“Intel is making a credible reset.”
Intel’s collaborations, including a $5 billion equity investment from NVIDIA and a multi-year deal with Google (NASDAQ:GOOGL) for CPUs and ASICs, manifest its strategic partnerships aimed at bolstering its technological capabilities. However, the company still faces a substantial gap in AI acceleration performance compared to AMD.
AMD’s price-earnings ratio stands significantly higher than Intel’s, reflecting investor optimism about AMD’s future growth prospects. On platforms like Reddit, sentiment towards AMD appears bearish due to a perceived disconnect with projected earnings. Similarly, analysts’ price targets portray cautious outlooks, hinting at potential volatility.
Moving forward, it remains crucial for investors to consider the broader financial landscape rather than basing decisions on short-term market trends. Holding diversified exposure to both companies might prove prudent as both continue evolving their AI strategies. Observing AMD’s MI450 developments and Intel’s 18A volume production could provide insights into future shifts in market dominance.
