After another attempt to break out above $50, Intel (INTC) fell under selling pressure. Advanced Micro
Devices (AMD) fared poorly last week, too. The stock lost almost 10% on an unjustified analyst
downgrade.
Analysts have too much sway on momentum stocks. Prospects continue to rise for both firms and
different reasons.
AMD is an easy target for bearish analyst re-ratings. The stock peaked at over $160 and formed a
downtrend in Dec. 2021. AMD’s PC desktop market share growth may slow as Intel reasserts itself. Intel
fixed its botched i7-11000 series launch early last year with Alder Lake. The CPU lineup has competitive
prices, strong performance, and good reviews from the community.
Intel delayed its discrete GPU (graphics card) Q1 launch. It now sees a launch first for laptops in the
current quarter. Later this year, Intel will release the Arc GPU to compete with Nvidia (NVDA) and AMD.
The market is big enough for three players. But after the post-pandemic re-opening, PC sales may slow.
People will prefer outdoor activities to gaming. Corporate workers will adopt a hybrid work system.
Going to work even part-time will add to commute time. This is not enough to hurt Intel and AMD’s
long-term prospects in the computer market.
