Intel and Advanced Micro Devices are recording new gains on Wednesday following the announcement of significant price hikes across their processor ranges.
According to a report from Nikkei Asia, Intel will be raising its prices in the coming days, while AMD plans to do the same in April.
Since the beginning of the year, Intel has been the top performer, rising by over 20% compared to a marginal “drop” for AMD.
Nevertheless, there are reasons to believe that AMD is actually more interesting as a long-term investment.
The aforementioned reports of price hikes bode well for Intel and AMD stocks, signaling strong pricing power and resilient demand.
Increasing prices by up to 15% will allow both companies to offset rising manufacturing costs and directly increase their gross margins.
Furthermore, price hikes indicate a “seller-friendly market.”
Severe supply constraints — with lead times increasing from two weeks to over three months — suggest that customers are willing to pay a “premium” to secure essential processors.
Ultimately, upcoming price increases suggest that the surging demand for AI-focused data centers is redirecting production capacity towards high-margin chips, creating scarcity that supports higher price floors across all product ranges.
For long-term investors, Advanced Micro Devices remains the more relevant choice for several reasons.
Unlike Intel, which is currently undergoing a costly “government-sponsored restructuring” related to its mega-factories expansions, AMD operates on a lean fabless model — leveraging advanced nodes from TSMC without heavy investment expenses.
Moreover, its strategic wins are making headlines: a $60 billion chip deal with Meta Platforms and the upcoming release of MI450, which experts believe can strengthen its leadership position in AI infrastructure.
In fact, the launch of MI450 specifically positions AMD as the main alternative to Nvidia, allowing it to capture a “duopoly premium” that Intel’s Gaudi range has not yet matched.
In short, Intel’s recovery is real, but its path to profitability is tied to a “government-sponsored restructuring,” making AMD’s stock the more agile and aggressive bet.
The synchronized rally of Intel and AMD shares marks the onset of a new “silicon supercycle” — where computing power is considered a strategic national asset.
Intel’s role as a cornerstone of national manufacturing is vital, but its upside potential is limited by restructuring and slower adoption in next-generation markets.
On the other hand, Advanced Micro Devices offers a pure focus on AI-ready infrastructures, strategic alliances with hyperscalers, and a clearer path to expanding margins.
It is also worth noting that Wall Street currently only recommends “holding” Intel stock, with an average price target of about $45, implying a potential decline of about 4% from current levels.
In contrast, AMD remains a recommended “buy” stock, with price targets reaching up to $380, indicating a potential increase of about 70% from current levels.
