AMD vs. Intel: Which Stock Is the Better Buy Right Now?
Key Points
Intel is backed by an investment worth nearly $9 billion from the U.S. federal government.
AMD's data center business grew 57% year over year in the last quarter.
Intel's stock has soared 260% this year.
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Both Advanced Micro Devices (NASDAQ: AMD) and Intel (NASDAQ: INTC) have been riding high this year as a frenzy of chip demand has taken hold amid the artificial intelligence (AI) boom. The significant sell-off in the tech sector on June 23 has created a buying opportunity. So which stock is the better long-term investment?
Intel is in the good graces of the government
Intel's turnaround is impressive. Since the start of 2026, the stock has climbed more than 258%, a staggering comeback from a company that trailed the competition for years. CEO Lip-Bu Tan has positioned Intel as the top domestic foundry. With backing from the federal government and a newly announced partnership with Apple, Intel looks hard to beat.
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This turnaround story has, however, made Intel's stock quite expensive. Intel's forward and trailing P/E ratios are sky-high at 161 and 904, respectively. Yet its PEG ratio remains well below 1, suggesting Intel could have significant growth ahead.
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AMD's financials and climbing market share continue to impress
AMD has steadily increased its market share, and the company's financials are strong. AMD's first-quarter revenue grew 38% year over year, and net income was up 95%.
AMD is more favorably priced than Intel. Its valuation metrics are indeed high, but its P/E ratios are nowhere near Intel's. AMD continues to see incredible demand, particularly in its data center segment. The data center business has grown 57% as of the first quarter of 2026, with nearly $6 billion in revenue.
Which is the winner?
AMD appears to be the better buy right now based on its financials and pricing, but I say this with a caveat. If the U.S. government continues to favor Intel, the stock's valuation could be more than justified, with plenty of upside still left. For investors, AMD seems safer, but if you're bullish on the U.S. government's involvement and its ambitions to position Intel as the foundry of choice for the Western Hemisphere, Intel is compelling even at the current valuation.
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Catie Hogan has positions in Apple. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, and Intel. The Motley Fool has a disclosure policy.
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