Advanced Micro Devices Inc and Intel Corp witnessed a downturn on Monday, March 25 following China’s announcement of new guidelines, phasing out foreign microprocessors in government PCs and servers.
China’s decision to target chipmakers in favor of homegrown solutions sent shockwaves through the semiconductor market, leaving investors seeking stability amidst the turbulence. Semiconductor ETFs such as the VanEck Semiconductor ETF, the iShares Semiconductor ETF, and the Direxion Daily Semiconductor Bull 3x Shares ETF saw volatility as well.
In light of this volatility, we compared key players offering more value amid the uncertainty. They include Nvidia Corp, Intel, AMD, and Micron Technology Inc.
Assessing Fundamentals: Intel in the Lead
| P/E Fwd | Price/Sales | EV/Sales | |
| Nvidia | 38.26 | 38.50 | 38.14 |
| Intel | 30.86 | 3.23 | 3.78 |
| AMD | 49.00 | 12.71 | 12.61 |
| MU | 183.23 | 7.03 | 7.34 |
Fundamental analysis reveals that while Nvidia, AMD, and Micron boast higher Price-to-Earnings (P/E) ratios compared to Intel. Intel also appears to be more favorably placed on Price/Sales and EV/Sales bases.
Intel Stock Performance: Technical Analysis
Technical indicators paint a different picture for Intel stock. The stock shows strong development within a rising trend channel in the medium to long term, indicating positive growth and increased buy interest among investors.
Despite this, the stock’s current trend is considered strongly bearish, with buying pressure suggesting potential future bullish movement. Intel stock remains below its 5, 20, and 50-day exponential moving averages, indicating a bearish trend. The Moving Average Convergence Divergence (MACD) indicator is bearish, and the Relative Strength Index (RSI) signals oversold conditions.
While Intel stock appears to be in a better position compared to its semiconductor peers fundamentally, technical analysis provides a mixed outlook. The medium-to-long term outlook is promising, while the short-term outlook remains bearish.
Image: Shutterstock
