BOFA Prefers AMD Stock Over Intel as Earnings Season Begins

AMD Stock


Bank of America, an investment firm, said it favors AMD (NASDAQ:AMD) over Intel (NASDAQ:INTC) since the former is more likely to gain from its purchase of Xilinx in the industrial and auto industries. This statement was made before the earnings season for the first quarter.

Analyst Vivek Arya, who has a buy recommendation on AMD stock and an underperform rating on Intel, pointed out that even if the PC and data center markets are experiencing difficulties, AMD is anticipated to profit more than Intel later this year owing to new products, notably its Genoa server CPU.

In a note to investors, Arya stated, “We believe AMD stock is overall better positioned given its high exposure to cloud vendors who should ramp up CPU/accelerator investments on AI tailwind.” “It is 5nm Genoa also enjoys process node advantage and core count leadership (better multi-threading performance) over ‘Intel 7’ Sapphire Rapids, even though the latter’s AI performance claims,” Arya added.

The majority opinion among financial experts is that AMD earned 56 cents per share in the first quarter on sales of 5.31 billion dollars. On the other hand, they anticipate a loss of 14 cents per share for Intel on revenues of $11.22 billion.

Arya said that even though shares of Intel have increased throughout the most recent few trading sessions, which some people believe is due to the firm’s portfolio for artificial intelligence, the business is expected to continue losing server market share to AMD until at least the year 2025.

Arya slashed his forecasts for Intel for 2023 before the company reported its results for the first quarter. He reduced his projections for revenue and profits per share by 6% and 38%, respectively. Arya did not alter his forecast for AMD, which remained constant.

AMD and Samsung reaffirmed their agreement over GPU architecture at the beginning of this month.

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