The personal computer sales slowdown is among many sectors struggling after the pandemic. The pandemic of 2020-2022 accelerated demand for PCs, exercise equipment, and online services, among many things. After both Intel (INTC) and AMD (AMD) posted sharply lower revenue, investors are ignoring the PC slowdown.
Speculators are willing to bet that the soft PC sales cycle is at its lowest.
Intel posted a four-cent loss per share. Revenue of $11.7 billion is 36.4% lower Y/Y. CEO Pat Gelsinger said Q2 revenue will top $12.5 billion. Margins will be lower at 37.5%.
AMD got lucky when it posted revenue falling by 9.2% to $5.35 billion. The stock fell to the low $80s before rebounding the next day.
Rumors circulated that Microsoft’s AI chip will require AMD’s help. Later denied by Microsoft, AMD stock did not give back its gains.
Which is a Buy?
Neither stock is a compelling buy. AMD may likely trade above $100 on positive sentiment, not on fundamentals.
Intel may trade back to $35 by attracting value investors. Both firms have excess inventory that customers do not want. The high price point for performance products is in low demand.