Why Advanced Micro Devices Stock Popped Friday

• Intel bushed connected net and gross successful Q4.

• Intel warned of proviso problems successful Q1 2026.

• Supply shortages tin beryllium large quality for companies that are inactive producing -- similar AMD.

• 10 stocks we similar amended than Advanced Micro Devices ›

Intel (NASDAQ: INTC) stock's successful freefall this morning, down much than 15% aft announcing an net bushed but a guidance miss. Advanced Micro Devices (NASDAQ: AMD) stock, connected the different hand, is headed successful the other direction.

AMD shares gained 3.8% done 10:05 a.m. ET Friday. The large question is why?

Intel crushed connected net past night, reporting income of $13.7 cardinal ($300 cardinal much than Wall Street analysts expected), and adjusted net of $0.15 per stock -- twice expert guidance. Unfortunately for Intel investors, the institution followed up this bully quality with immoderate bad.

Q1 2026 income and net volition some autumn acold abbreviated of statement expectations. Sales could beryllium arsenic small arsenic $11.7 cardinal ($2 cardinal beneath Q4 and $850 cardinal beneath analysts' forecasts). And Intel volition beryllium fortunate to conscionable interruption adjacent connected net this coming quarter, with small accidental of earning the $0.05 that Wall Street wanted.

What does each this mean for AMD? Intel continues to endure from a proviso shortage, and that shortage is going to get adjacent worse successful Q1 -- and astir apt volition stay a occupation successful Q2. CFO David Zinsner warned Q1 proviso volition beryllium "at its lowest level successful Q1 earlier improving successful Q2."

Weak proviso astatine Intel means a proviso crunch for the semiconductor chips manufacture astatine large. And arsenic Economics 101 taught us, fixed dependable oregon rising request (for AI chips), debased proviso means higher prices. That astir apt means beardown nett margins and stronger profits for everyone competing with Intel, AMD banal included.

I cannot telephone AMD banal "cheap" precisely astatine 133 times earnings. But Intel's study is inactive bully quality for AMD banal today.

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