Intel or AMD: Billionaire Israel Englander Doubles Down on One AI Chip Stock

As AI reshapes industries across the board, chip companies have emerged as the backbone of this technological revolution. These firms design the high-performance processors needed to train and run complex AI models, making their hardware essential to the development of everything from self-driving cars and smart home gadgets to voice assistants, facial recognition, robotics, and tools used in healthcare, finance, and manufacturing.

With demand for computing power surging, the AI chip market is becoming one of the fastest-growing segments in tech. According to ResearchAndMarkets, the global market for AI chips is projected to expand from $31.6 billion in 2025 to $846.8 billion by 2035, reflecting a CAGR (compound annual growth rate) of 34.84% throughout the period.

It’s no wonder investors are chasing the opportunity with enthusiasm. AI has become the stock market’s hottest theme, drawing in some of Wall Street’s biggest names – including billionaire Israel Englander.

Englander, the founder of Millennium Management, is a titan in the investing world with a net worth of $14.2 billion and over $75 billion in assets under management. His moves often serve as a bellwether for broader market sentiment.

Among his AI-related bets, Englander has shown particular interest in semiconductor giants Intel (NASDAQ:INTC) and Advanced Micro Devices (NASDAQ:AMD). Both companies play a central role in the chip industry, but recent filings reveal that he’s doubling down on one while pulling back from the other. Let’s take a closer look to see which name has earned his confidence.

Intel

Let’s go back a moment and meet up in the year 2000, a time when one chip company ruled the roost. That is when, during the height of the dot-com boom, Intel briefly became the world’s most valuable company. Its market cap peaked at over $500 billion, the surge driven by massive demand for computer hardware and optimism around the tech industry.

There are evident similarities between now and then, with demand for AI tech all the rage at the moment. The big difference, however, is that Intel is nowhere near the top of the market cap pile and is currently considered something of a fallen chip giant.

Its struggles have been well-documented; Intel has faced a series of challenges in recent years, from falling behind in the CPU market to missing the early surge in AI. While competitors like AMD gained ground in processors and Nvidia took the lead in AI hardware, Intel stuck with a CPU-first approach and was slow to deliver viable AI alternatives.

Meanwhile, its foundry business, launched to compete with TSMC and Samsung, has so far generated heavy losses. Combined with declining revenues and internal shakeups, the company’s position has weakened significantly.

That said, there has been a big change in the C-suite that could point the way forward. The recent appointment of Lip-Bu Tan as CEO has generated plenty of positivity. Known for his sharp vision and deep industry experience, Tan has refocused Intel on AI whilst offering a more disciplined approach to execution – signaling that Intel may finally be ready to turn the corner.

It’s far from outlandish to think Englander finds Tan’s appointment a real boon. The billionaire leaned heavily into this name during Q1, increasing his INTC stake by 205% with the purchase of 8,881,848 shares. These are currently worth over $196 million.

Northland’s Gus Richard, an analyst ranked amongst the top 3% of Wall Street stock experts, certainty thinks Tan has what it takes to Change Intel’s fortunes, although he admits it won’t be an easy task.

“We believe the new CEO has the right focus, but turning around INTC will take a considerable amount of time and effort,” the 5-star analyst said. “Intel is flattening the organization, significantly increasing the CEO’s direct reports. The Company expects to lower operating expenses by roughly $1.5B this year and another $1B next year. At the same time, INTC needs to execute its product roadmap, ramp the 18A process, attract foundry customers, and develop an AI strategy. The Company is also prioritizing de-leveraging. INTC indicated this will not be a quick fix.”

Bottom line, Richard rates the stock a Buy while his $28 price target lays the groundwork for 12-month returns of ~37%. (To watch Richard’s track record, click here)

That said, Richard is currently the Street’s lone INTC bull; with an additional 26 Holds and 4 Sells, the stock claims a Hold (i.e., Neutral) consensus rating. Going by the $21.30 average price target, the shares have a modest 4% upside from current levels. (See INTC stock forecast)

AMD

It’s quite fitting that the next AI chip stock we’ll look at is AMD, the company that has become a thorn in Intel’s side in the CPU market. Interestingly, its own turnaround was also the result of an astute CEO appointment.

Once trailing far behind its more illustrious rival, under the stewardship of CEO Lisa Su, AMD took advantage of Intel’s mistakes, especially the delays Intel faced in updating its chip manufacturing technology. By partnering with TSMC, AMD was able to use newer, more advanced processes to create faster and more efficient CPUs. Their Ryzen and EPYC lines delivered strong multi-core performance at competitive prices, appealing to both regular users and large data centers. While Intel struggled to keep up, AMD seized the opportunity to gain significant market share.

But while AMD successfully challenged Intel in the CPU arena, the battle in AI chips is a different story – and here, both companies face a common challenge. Despite AMD’s progress in traditional processors, it still significantly lags behind Nvidia, the undisputed leader in AI semiconductors. Nvidia’s early and aggressive investment in high-performance GPUs tailored for AI, supported by a robust software stack and widespread adoption, has given it a massive head start. In contrast, AMD’s offerings remain a step behind in both hardware specialization and ecosystem maturity, limiting its ability to truly compete.

That competitive gap may explain why Englander is pulling back. In the first quarter, he cut his AMD holdings by 32%, offloading 484,202 shares – perhaps signaling doubt about AMD’s ability to secure a meaningful slice of the booming AI chip market.

Still, AMD has continued to post solid quarterly results, which speaks to its underlying strength. But as Morgan Stanley analyst Joseph Moore points out, in this environment, execution alone may not be enough – not when investors are focused squarely on AI leadership.

“We still believe that while AI does not drive the earnings, it does drive the multiple, and the lack of visibility remains a challenge despite management’s second half optimism,” the 5-star analyst said. “Somewhat in contrast to current sentiment, we still believe that we are in a very strong investment phase for AI hardware, which should help, but in a very competitive market where NVIDIA and the ASIC vendors are all moving quickly we will need to see a very strong MI400 offering next year for AMD to cement that position. AMD’s position in all of its other markets remains strong, given Intel’s disarray, but AI remains uncertain.”

Quantifying his stance, Moore rates the shares as Equal-weight (i.e., Neutral) while his $121 price target implies the stock is currently fully valued. (To watch Moore’s track record, click here)

9 other analysts also stay on the sidelines here, yet with an additional 22 Buys, the stock claims a Moderate Buy consensus rating. Going by the $127.93 average price target, over the coming months the shares will appreciate by ~6%. (See AMD stock forecast)

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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.