Skip to main content

RealMoney Radio Mailbag: Why AMD's Price Leads Intel's

Cramer gives a listener a comparison of the two stocks.

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.

How can Advanced Micro Devices (AMD) - Get Advanced Micro Devices Inc. Report, with EPS of 4 cents a share, have a share price that exceeds competitor Intel's (INTC) - Get Intel Corporation Report $1.32?-- Al from New York

James J. Cramer:

Take into consideration the growth rate of each company. With AMD forecast to triple its EPS in 2006, and Intel, which I own in my charitable trust,

Scroll to Continue

TheStreet Recommends

ActionAlertsPLUS, growing at a modest 11% clip, it's understandable that investors would be willing to pay a higher earnings multiple for AMD. Also, AMD has been delivering some great products of late that threaten to take some market share from Intel, and investors and analysts have been turning more bullish on AMD.

Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by

clicking here