AMD or Intel, which one is better investment ?

Shares of Advanced Micro Devices AMD slipped more than 4.5% in morning trading Monday after a new report suggested that the company will not, in fact, strike a licensing deal with Intel INTC. Speculation about the possibility of a deal has inspired most of AMD’s price action over the past week, but it looks like the rumor is starting to fade.

Nevertheless, Intel and AMD remain two of the most popular semiconductor stocks—a space that has continued to thrive this year. Increased demand from several upstart consumer trends—including the Internet of Things, PC gaming, and self-driving cars—has breathed new life into this classic investor-favorite industry (also read: How to Invest in the "Internet of Things").

So with an Intel-AMD deal presumably not materializing, the two chipmakers continue to be competitors with entirely different stories. Intel is still the industry behemoth looking to maintain its top-dog status, while AMD is a compelling growth story with tons of investor interest.

But despite their differences, we can’t forget that AMD is basically the only significant rival to Intel in the market for x86-based microprocessors.

And while their rivalry certainly doesn't preclude an investor from holding both stocks, it’s always interesting to put two competitors head-to-head. After all, some of us may want a more diversified portfolio.

If you think you only have enough room for one of these stocks, let’s take a look at which one is the better buy right now.

Still, it’s easy to see why AMD is a popular stock right now. Our current consensus estimates would represent full-year EPS growth of more than 85% on sales growth of nearly 12%. That’s the kind of impressive growth that gets investors excited. In contrast, Intel looks to be growing at a slower pace, which makes sense for a company of its size and stature.

Source: Yahoo Finance

Trader Bozhidar Arabadzhiev

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