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While several stocks of fleas experienced convincing performance in 2024, Intel(Nasdaq: Intc) And Advanced micro-apparents(Nasdaq: AMD) were not among them. Intel shares fell by around 60% last year, while AMD shares fell by around 18%.
Let’s examine which semiconductor stock resembles the best rebound candidate in 2025.
In a semiconductor market largely motivated by Artificial Intelligence (AI)Intel and AMD were largely largely. AMD is the distant designer n ° 2 of Graphic processing units (GPU) Behind the market leader Nvidia. Intel’s market share in GPUs, on the other hand, fell to zero, although it is not far away, the company having only a market share of 2% on PC graphics cards in 2023.
AMD fought against Nvidia, largely due to its lower software. In a recent study, semianalysis called GPUs ready to use AMD “unusable” for AI training, noting that he needed “several teams of AMD engineers” to help him correct software bugs. However, AMD was able to carve out a niche in AI inference, semianalysis claiming that its customers generally use AMD GPUs for cases of use of narrow and well -defined inference.
However, AMD was able to see strong growth in data centers, but not on the same scale as Nvidia. Last quarter, it saw its data center increase by 122% from one year to the next and 25% sequentially to $ 3.5 billion. The company has credited its GPUS Instinct and its central processing units Epyc (CPU) for the leap of sales.
CPUs act like the brain of a computer, while GPUs have superior processing power. Although there is a lot of deserved attention to the GPUs, AMD made a good leap on the processor market, noting that it has taken stocks on the CPU servers when it is also good past PC market.
Overall, AMD has seen its quarter revenues climb 18% to $ 6.8 billion and its adjusted BPA jumped from $ 31% to $ 0.92. The company has therefore always increased despite the decrease in its shares.
Intel, on the other hand, saw its income decrease in the last quarter by 6% to 13.3 billion dollars, and its adjusted BPA is loss of $ 0.46 against a profit of $ 0.41 there is One year. The only positive point in the last quarter was its data center and its AI segment, which has seen income increase by 9% to 3.3 billion dollars. However, compared to Nvidia and AMD, it is a very modest gain in this segment.
Meanwhile, his largest segment, a computing client, saw his income drop by 7% to 7.3 billion dollars. In comparison, AMD has seen its customer segment revenues increase by 29% in the last quarter to $ 1.9 billion, showing that it is piercing on the main PC activity of Intel.
Perhaps the greatest misfortunes of Intel come from its foundry segment, which was a large obstacle to its results. The company has paid money into this company through capital expenditure (CAPEX), by creating new manufacturing facilities. However, the segment was a constantly significant monetary loser, in particular by bringing an operating loss of $ 5.8 billion in the last quarter, or 2.7 billion dollars when excluding a non -deficiency charge cash.
After the release of his CEO Pat Gelsinger, Intel said he could try to turn his foundry business. The company recently received $ 7.86 billion in direct funding and an investment tax credit of 25% of the government to continue to develop its manufacturing footprint in the United States
From the point of view of the evaluation, Intel is the cheaper action, trading at a price ratio / long -term benefit (p / e) of 12.6 times against 17.6 times for AMD.
However, if you appreciate the main activity of Intel separately and its foundry activity, its valuation is even more attractive.
Intel’s Foundry’s company has lost a lot of money, but it also has a lot of physical assets. Intel has spent $ 68.5 billion in Capex, mainly for the foundry sector since the end of 2021 and has $ 104 billion in physical assets. If you only take its recent capex expenses and subtract its $ 26 billion in net debt, its foundry activity is worth around $ 10 per share out of 4.3 billion shares. It also has an 88% stake in Mobileyewhich is worth around $ 11.4 billion, or $ 2.66 per Intel share.
As such, it is not surprising that the company has been the subject of redemption rumors. There are a lot of hidden physical assets that are not reflected in the course of its action, not to mention direct government funding and tax incentives.
AMD, on the other hand, was certainly the strongest of the two companies, although it has not obtained respect for the investor he could deserve. If more IA infrastructure turns to IA inference, it could be in the right place. Meanwhile, investors should not ignore its CPU activity, which has won actions in both data centers and PCs.
I like both stocks as a recovery candidates this year. I like a little more intel because of the deep value which, I think, is always in the stock. However, AMD also looks like a solid rebound candidate. Fortunately, investors do not have to choose and can add the two actions to their portfolios if they wish.
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Geoffrey Seiler Has no position in the actions mentioned. The Motley Fool has positions and recommends micro Advanced, Intel and Nvidia apparatus. The Motley Fool recommends the following options: Court February 2025 $ 27 calls Intel. The Word’s madman has a Disclosure policy.
