A few months back, AMD dipped to around $10/share right after Bitcoin and all the other altcoins in the cryptocurrency market plummeted.
I sold my 2 ETH, and I reinvested that money into the stock market. I used a small portion of it to even out my MU (Micron) stocks, and spent the rest on AMD. Last month, I sold all my TSLA (Tesla) stocks, and reinvested that money into AMD.
I know that most people think of Intel when they make a decision to either buy or build a computer. However, despite this, I decided to go with AMD.
DISCLAIMER - This is in no way any financial advice. You are responsible for your own actions. This article is strictly my opinion as to why I chose to buy AMD stocks over Intel stocks. I'm not telling you that you should buy any of these stocks.
Why I Chose AMD Over Intel Stocks
The reason for my decision has to do with a lot of things, and that has to do with the far future and potential that AMD has which greatly outweighs Intel.
If you take a look at NVDA (Nvidia), they went up several folds in the past few years! As of the writing of this post, June 22, 2018, Nvidia is at $250.60/share.
For those of you who don't know about Nvidia, Nvidia is basically a tech company known for creating graphics cards (GPU - graphics processing unit).
Uses for Graphics Cards
Graphics cards can be used for a lot of things:
- machine learning, deep learning, AI
- self driving vehicles
- displaying and rendering graphics for gaming and other graphics intensive activities
- virtual reality
Now, when it comes to graphics cards, the two main companies that comes to mind when it comes to making the actual GPU itself are Nvidia and AMD. Sure, Intel does make graphics chips incorporated inside their CPUs, but they don't perform as fast as dedicated graphics cards.
With this in mind, AMD has more potential than Intel, and could potentially rise very high in value just like Nvidia did, but probably not as high as Nvidia right now.
The main reason why I see AMD with the most potential for growth instead of Intel is because AMD creates BOTH CPUs AND GPUs! Not only that, if you think about the increase in demand for gaming, and machine learning based advancements in technology as time goes by, the demand for GPUs keeps going up.
From the point as a stock investor, AMD definitely has the biggest profit in terms of ROI, but it will have to be a long term game to really benefit from it. If you compare the price of a AMD stock to a Intel stock, it is way below Intel. AMD is currently $15.75 thanks to Trump and tariffs, and Intel is at $52.51.
Yes, Intel CPUs do have graphics chips inside of them, but they are integrated graphics cards, and they don't perform as well as a dedicated graphics card. Even if we were to compare them to AMD's integrated graphics inside their CPUs, AMD's GPUs are most likely going to outperform Intel's graphics in the long run due to the fact that AMD has been in the GPU space a lot more longer than Intel has.
In conclusion, with the increase in demand for self-driving cars, AI-related innovations, machine learning, and for better and faster graphics cards for gaming and entertainment, AMD has the most potential when compared to Intel. In the long run, AMD has the most amount of room for major growth. Even though AMD is not $20/share right now, based on how things are progressing now, I think they will hit $20/share either by the end of this year or by the first half of 2019. Now you know why I chose AMD over Intel.