Shares in chipmaker Advanced Micro Devices (AMD) hit a one-year high on Friday, while rival Intel’s (INTC) soared by roughly 14% following reports it has secured a preliminary chip-making deal with Apple (AAPL). However, analysts at Lynx Equity have a clear favorite: Intel.
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Lynx Equity Picks Intel as Winner
“We continue to prefer Intel over Advanced Micro Devices,” the research and private equity firm said in its latest note, noting that the news report that Apple has selected Intel to make some of the chips that will power its devices “adds more fire to a stock that has already been on fire this year.”
For context, AMD and Intel are fierce rivals in the central processing unit (CPU) market, which has grown increasingly important as CPUs serve as the brain of AI computers. They are also challenging Nvidia’s market dominance in the graphics processing unit (GPU) — the chips that accelerate the heavy number-crunching in AI training and applications — with their respective Instinct and Arc/Gaudi lines.
Over the last five days, Advanced Micro Devices’ shares have surged by approximately 42% following the U.S. chipmaker’s blockbuster first-quarter earnings beat. The solid demand for its EPYC server CPUs and continued boost in shipments of its Instinct GPUs pushed its revenue from its data center segment to $5.8 billion, up 57% from a year ago.
Intel’s shares have also climbed by the same measure over the past five days following its recent stellar first-quarter earnings.
Why Lynx Equity Is Betting on Intel, Not AMD
- The Apple deal should help erase concerns about the sustainability of Intel’s chip foundry business and the survival of the chipmaker itself
- Boost for INTC stock as investors brush up their portfolios to reflect the deal
- Intel’s participation in Elon Musk’s SpaceX’s $119 billion Terafab chip manufacturing project
- INTC stock could be headed for $175 per share
- Intel has been and remains Lynx Equity’s best idea pick for 2026
Which AI Stock Is the Better Buy?
Both Intel and Advanced Micro Devices currently carry downside risks from analysts, TipRanks’ Stock Comparison tool shows. However, AMD is seen as posing a far lesser risk to investors and even holds a Strong Buy consensus rating on Wall Street.
This is based on an average price target of $440.45 that implies about 3% downside risk.
