For nine days in a row, AMD’s stock has increased under the leadership of CEO Lisa Su.
Shares of competitor Advanced Micro Devices are just becoming hotter as pressure mounts on Intel’s stock.
AMD’s stock (AMD) has been performing well lately, as evidenced by its smooth transition to a ninth straight day in the green on Friday, during which it has increased by more than 27%. However, one analyst believes that AMD is receiving even more love as investors are being alerted to the fact that its rival’s stock has been rising in recent weeks.
“Everything that [Intel] said on their call is very good for AMD,” Jordan Klein, a trading-desk analyst at Mizuho, said in a note on Friday.
One issue that Intel (INTC) brought to light is a severe supply shortage that is compelling it to divert capacity from its personal computer division in order to satisfy increased demand in its data center division. Although Intel is not the only company experiencing supply issues, Klein believes AMD is better positioned to satisfy consumer demand since it sources its chips from Taiwan Semiconductor Manufacturing Co. (TW:2330), whereas Intel both outsources manufacturing and produces its own processors.
Klein claims that hyperscalers prefer AMD’s server central processor units over Intel’s. Because AMD’s fifth-generation Epyc processor surpasses Intel’s chips, he believes that Intel’s statement, which pointed out that hyperscaler demand has far exceeded previous predictions, is encouraging.
According to Klein, AMD is spending less money, having greater margins, and growing its revenue, and its stock is “a lot cheaper” than Intel’s.
The rivalry between AMD and Nvidia (NVDA) in the field of artificial intelligence graphics processing units has received a lot of attention. However, there is growing interest in the server CPU industry, which competes between AMD and Intel. According to KeyBanc analyst John Vinh, AMD is now nearly entirely sold out of its server CPUs for the year.
Furthermore, according to Klein, AMD has “a real AI product offering” with its Instinct family of accelerators, giving it a stronger stake in the AI space than Intel. When Helios, the company’s first rack-scale solution, launches in the second half of this year, investors are eager to see how it compares to Nvidia.
According to Dow Jones Market Data, AMD’s stock achieved its longest winning streak since November 19, 2019, closing Friday’s session in positive territory. In contrast, Intel’s stock is down 17% on Friday and is on track to have its worst day in a year and a half.
