This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Intel Wins the Chip Battle vs. AMD Based on Technology Trends

If you buy shares in Intel, you receive a 3% yield on your money. AMD doesn't pay a dividend. Intel is making new 52-week highs, and AMD's 2013 advance has stalled in 2014. I know there's a lot of attraction towards AMD due to its low share price but the price is what you pay, value is what you receive.

Does the above indicate AMD should be sold to buy Intel? Not exactly, in fact, I think an 80/20 holding is appropriate or 80% Intel and 20% AMD. AMD's progress in graphic processing units (GPU) is impressive. Apple (AAP)L announced the use of AMD's dual FirePro professional graphics solutions in its new Mac Pro.

Apple is such a large customer that it significantly moves the needle for AMD. Apple's confidence will undeniably influence other computer makers to consider AMD over Nvidia (NVDA) and Intel.

AMD's GPU success reportedly could increase its graphics chip market share to 30% by the end of this year. AMD faces intense competition from graphics producers NVIDIA and Intel. For AMD, exceeding 30% is anything but certain.

That said, Intel is ideally positioned to exploit the expected trends in processors. The ability to achieve Moore's law through transistor density is reaching natural limits with current technology due to electrons' ability to cross a conduit gap if paths have too close of proximity to each other. However, using multiple processors inside the same computer is one viable solution to increase computing power.

INTC Revenue (Quarterly) Chart

You've likely seen computer's advertisements with multiple cores. More processors within one device is only one way for Intel to continue driving revenue and profits. Another, even more exciting strategy is setting DRAM within the CPU instead of outside on the motherboard.

Traditionally, memory on the motherboard is a bottleneck for CPUs and GPUs. GPUs mitigated performance reductions through L1 and L2 memory cache. Other than low-end budget machines, GPUs use their own, high-performance graphics memory.

Intel has a superior solution that may change computer design and will lower operating costs. Instead of limiting to L1 and L2 cache on board, Intel is actively working on moving all or at least significantly more memory on-chip and as close to the processing cores as possible.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AMD $2.30 0.00%
INTC $32.08 0.00%
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs