The battle for AI dominance is moving beyond just graphics chips, and Morgan Stanley is the latest firm to weigh in on the two biggest names in the chip space ahead of earnings. Top analyst Joseph Moore recently updated his view on Advanced Micro Devices (AMD) and Intel (INTC) with a clear preference for one over the other.
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Both companies are seeing rising demand as AI workloads increasingly rely on CPUs. However, Morgan Stanley said the opportunity is not the same for both, pointing to differences in product strength and execution. It is worth noting that Moore ranks 201 out of more than 12,000 analysts tracked by TipRanks. He has a success rate of 61%, with an average return per rating of 22.6% over a one-year timeframe.
Server Strength Lifts Intel’s Outlook, but Risks Remain
Morgan Stanley maintained an Equal-weight rating on Intel but raised its price target to $56 from $41, indicating about 15% downside from current levels. The firm said Intel’s upside is driven by stronger earnings potential and improving server demand. It now expects Intel’s data center revenue to grow about 30% year over year in 2026 and has lifted its long-term earnings estimates to levels above current Wall Street forecasts for the next two years.
However, the firm remains cautious. Moore flagged concerns around Intel’s server roadmap, noting that issues with its next-generation “Diamond Rapids” chip have been acknowledged by management. He also said the company’s push into the foundry business still carries high uncertainty, and the chances of it turning into a meaningful profit driver are low.
Looking ahead, Intel is scheduled to announce its results for the first-quarter 2026 after the market closes on Thursday, April 23. Analysts expect earnings of $0.01 per share, up 92% from the year-ago quarter, and revenues of about $12.39 billion, reflecting a 2.2% year-over-year decrease.
Data Center Momentum Supports AMD’s Position
For AMD, Morgan Stanley also holds an Equal-weight rating with a $255 price target. Here, the price target signals about 7% downside from current levels. Even so, the firm clearly stated that between the two, “We have a preference for AMD.”
The key reason is AMD’s product leadership. Moore said the upcoming “Venice” processor is a strong upgrade and is likely to outperform Intel’s offerings in the data center market. That said, the firm remains measured in its stance. It noted that AMD’s stock can be volatile, pointing out that shares fell last quarter despite solid server performance. Morgan Stanley also added that AMD’s stock is more likely to be driven by GPU performance than CPU gains alone.
Looking ahead, AMD will report its Q1 FY26 earnings on Tuesday, May 5, after the market close. Analysts expect earnings of $1.27 per share, up 32% from a year ago, and revenue of about $9.85 billion, reflecting a 32% year-over-year increase.
Which Chip Stock Is the Better Buy Right Now?
Turning to Wall Street, out of the two stocks mentioned above, AMD stands out with a Moderate Buy consensus from analysts. AMD stock carries an average price target of $287.33, implying roughly 4.50% upside from current levels.
By contrast, Intel has a Hold rating from analysts. INTC’s stock average price target of $55.47 suggests about 16% downside, pointing to more limited near-term upside compared with AMD.
