Intel (NASDAQ: INTC) and Advanced Micro Devices (NASDAQ: AMD) are extending gains on Wednesday following news of sweeping price increases across their CPU product lines.
According to a Nikkei Asia report, Intel will raise prices within the next few days, while AMD has plans to follow suit in April.
Year-to-date, Intel has been the outperformer, up nearly 20% versus AMD’s marginal “decline.”
Still, there’s reason to believe that the latter is actually more attractive as a long-term holding.
Why price hikes are positive for Intel and AMD stock
The aforementioned reports of price hikes are bullish for both Intel and AMD shares as they signal strong pricing power and resilient demand.
Raising prices by up to 15% will enable both companies to offset rising manufacturing costs and directly boost gross margins.
Additionally, price hikes indicate a “seller’s market.”
Severe supply constraints – with lead times jumping from two weeks to over three months – suggest customers are willing to pay a “premium” to secure essential CPUs.
All in all, the incoming price hikes suggest surging demand for AI-focused data centers is diverting production capacity toward high-margin chips – creating a scarcity that supports higher price floors across all product lines.
Why are AMD shares better to own than INTC
For long-term investors, Advanced Micro Devices remains the sharper play for several reasons.
Unlike INTC, which is currently undergoing “costly restructuring” tied to its government-backed mega-fab expansions, AMD operates a lean fabless model – leveraging TSMC’s advanced nodes without heavy capital expenditure.
Plus, its strategic wins are headline-grabbing: a $60 billion chips deal with Meta Platforms and the upcoming release of MI450, which experts believe will cement its leadership in AI infrastructure.
In fact, the MI450 launch specifically positions AMD as the primary alternative to Nvidia, helping capture a “duopoly premium” that Intel’s Gaudi line has yet to match.
In short, Intel’s turnaround is real, but its path to profitability remains tethered to “state-managed” restructuring, making AMD stock the more agile and aggressive bet.
What’s the consensus rating on Intel and AMD
The synchronized rally of Intel and AMD shares marks the dawn of a new “silicon supercycle” – where compute power is treated as a strategic national asset.
Intel’s role as a domestic manufacturing pillar is vital, but its upside is capped by restructuring and slower adoption in next-gen markets.
Advanced Micro Devices, by contrast, offers a pure-play focus on AI-ready infrastructure, strategic alliances with hyperscalers, and a clearer path to margin expansion.
What’s also worth mentioning is that Wall Street currently rates Intel stock at “hold” only, with a mean price target of about $45, signaling potential “downside” of roughly 4% from here.
On the flip side, AMD remains a buy-rated stock, with price targets going as high as $380, indicating potential for another 70% upside from current levels.
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