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RealMoney Radio Mailbag: Intel vs. AMD

A listener asks Cramer why it is he doesn't just sell Intel and buy AMD.

Editor's note: The following are questions received from listeners of "RealMoney Radio." To send Cramer a question about topics from his radio show, click here. Listen to Cramer's latest radio show by clicking here.

Why don't you just sell Intel (INTC) - Get Free Report and buy Advanced Micro Devices (AMD) - Get Free Report already?-- Peter from New York

James J. Cramer

: While AMD may continue to outperform Intel in the near term, Intel is a very cheap stock at 17 times expected 2005 earnings. AMD has been putting out hotter products lately, but I don't think Intel's management team is going to sit still, and I expect them to crank up the innovation to beat AMD.

Plus, within a couple of years, Intel's WiMax technology could be a wireless communications standard. (Note: Cramer owns Intel for his charitable trust,


What do you think of Washington Mutual (WM) - Get Free Report?-- Scott from Wisconsin

James J. Cramer

: Washington Mutual is a solid bank trading at 11 times earnings with a near-5% dividend yield. However, I don't advise buying the banks as the Fed is likely to continue hiking rates and it will be hard for the financials to outperform.