AMD vs Intel share price: which is the better buy?

Despite AMD closing in on Intel over the last 12 months, analysts still think the latter is the better buy for investors in 2020.

Advanced Micro Devices (AMD) has put in an incredible performance over the last year and narrowed the gap between it and its longstanding rival Intel.

Over the last 12 months, AMD has seen its share price rally more than 159% to $51.43, while Intel’s stock is up some 30% to $62.73.

However, despite AMD catching up with Intel, not just in terms of share price performance, but the sophistication of its products and technology, analysts still believe that the latter is the better buy for investors in 2020.

Jefferies upgrades Intel to ‘hold’

Jefferies is no longer bearish about Intel, with the US-based investment bank upgrading its rating for the stock from ‘underperform’ to ‘hold’ and issuing a price target of $64 a share, up from $40.

‘Share loss, a transistor transition disaster, changing of the management guard, and a CEO bonus that inflects with the stock in the low $60s tell us the table is set for change at Intel,’ Jefferies analyst Mark Lipacis wrote in a note.

Lipacis went on to say that if Intel opted to sell its factories it could assist it to ‘close the transistor gap with AMD’ and strengthen its balance sheet. However, he admitted that the company is unlikely to divest the assets in the near-term.

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Cowen lifts AMD price target

Analysts from Cowen are optimistic about AMD too, upgrading their target price to $60 earlier this week – making them one of the most bullish brokerages for the stock.

‘Our queries continue to shift to 'when,' not 'if' in terms of share gains and growth, as investors largely no longer question whether or not AMD will gain material x86 share or deliver upon its roadmaps, but instead try to better understand the cadence, magnitude, and competitive roadmap positioning as Intel experiences 14-nanometer supply constraints and roadmap changes,’ Cowen analyst Matthew Ramsey said.

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