Chipmakers are attracting significant attention amid the rising demand for artificial intelligence (AI) technologies. This article compares Intel (INTC), Advanced Micro Devices (AMD), and Qualcomm (QCOM) to identify which chip stock presents the highest upside potential as analyzed by industry experts.
Intel’s struggles amid innovation concerns
Intel shares experienced a steep decline of over 60% in 2024, marking the company’s worst performance since its initial public offering in 1971. This downturn raised investor concerns regarding Intel’s lack of innovation, product delays, and strategic missteps under former CEO Pat Gelsinger, who resigned in December 2024. Investors are particularly disappointed that Intel missed opportunities in the generative AI sector compared to competitors like Nvidia.
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The company is attempting to regain investor confidence by reducing costs, streamlining operations, and enhancing manufacturing and product offerings. However, skepticism remains due to Intel’s historical challenges in execution.
According to Nasdaq, Citi analyst Christopher Danely maintains a Hold rating on Intel, with a price target of $22. Danely’s reservations about Intel are rooted in concerns about the company’s strategic direction and leadership, particularly regarding the search for a new CEO. He also suggested that exiting the foundry business could enhance Intel’s financial performance and stock value. Wall Street collectively rates Intel as a Hold, comprising 21 Holds, five Sells, and one Buy recommendation. The average price target for INTC stands at $24.53, indicating a potential upside of 19.3%.
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AMD’s growth potential in AI
Advanced Micro Devices shares have seen a 7.4% decline over the past year. The company has struggled to exploit AI chip opportunities as effectively as Nvidia and has faced challenges in its gaming and embedded segments that affected overall performance. Nevertheless, AMD projects strong growth in the AI space, increasing its full-year sales estimate for AI-accelerators to over $5 billion from an earlier forecast of $4.5 billion. A 122% rise in data center revenue in Q3 solidified CEO Lisa Su’s confidence in demand from cloud providers for AI infrastructure development.
Northland analyst Gus Richard reiterated a Buy rating on AMD, setting a price target of $175 according to Nasdaq. He identified AMD as a top pick for 2025, predicting continued market share gains in AI GPUs, server CPUs, and the PC sector as pressures in the gaming and embedded segments ease. Richard expected a more robust PC refresh cycle than previously anticipated, foreseeing more upside than risks for AMD in 2025. Overall, AMD holds a Moderate Buy consensus rating based on 23 Buys and eight Holds, with an average price target of $184.52, suggesting a 47.2% upside potential.
Qualcomm’s diversification efforts amid concerns
Qualcomm shares gained approximately 15% over the past year. The company is a significant chip supplier for smartphone manufacturers but faces worries regarding potential business losses after its contract with Apple for modem chips concludes in 2026. To mitigate this, Qualcomm is diversifying into high-growth areas such as AI, the Internet of Things (IoT), and automotive sectors, with its automotive business reporting a 68% year-over-year revenue growth to $899 million in Q4 FY24.
Qualcomm also achieved a favorable ruling in its legal dispute with Arm Holdings, affirming that it did not breach licensing agreements related to its acquisition of Nuvia in 2021. KeyBanc analyst John Vinh maintained a Hold rating on Qualcomm with a price target of $150, citing ongoing macro challenges and company-specific risks as reasons for his cautious stance, according to Nasdaq. Despite a Moderate Buy consensus rating—comprising 11 Buys, 10 Holds, and one Sell—the average price target for QCOM at $199.88 indicates a potential 26.6% upside.
Analysts generally exhibit more optimism toward AMD and Qualcomm while remaining cautious on Intel, recognizing a greater potential for growth in AMD stock compared to the others.
Which one though?
Deciding between Intel, AMD, or Qualcomm as a chip stock investment depends on your investment goals, risk tolerance, and market outlook. Intel may appeal to value investors hoping for a turnaround, though skepticism around its innovation and leadership remains a risk. AMD offers strong growth potential in AI and data centers, with analysts optimistic about its market share gains, but it faces competition and ongoing challenges in gaming and embedded segments. Qualcomm stands out for its diversification into automotive and IoT markets, but its reliance on smartphone chips and uncertainties surrounding its Apple contract may temper enthusiasm. Each stock has unique risks and opportunities, making it crucial to align your choice with your investment horizon
Disclaimer: The content of this article is for informational purposes only and should not be construed as investment advice. We do not endorse any specific investment strategies or make recommendations regarding the purchase or sale of any securities.
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