Forbes: where is the capital market AMD and Intel king of money?

Although this year has just opened its head, but AMD and Intel these two PC chip giant's share price has undergone a magnitude of 20% conversion. But the difference is that Intel's share price is down, while AMD's share price is rising.

Why are these two different situations? The reason is simple, AMD chip performance better. Fund manager Bob Turner said a secret. The investor said, has been, AMD few products can be comparable with Intel, it has been living in the shadow of Intel, but even more than the opponent has caught up with the recent AMD products, to seize market share.

Fund manager Kevin Landis said over the years, Intel has been in a leading position in the market, the first is the technology and process, and then create a first-class brand, but in the end AMD to break this myth, users began to accept AMD.

This makes AMD more advantage than Intel in the stock rating. AMD's current market value is 100 times last year's profit of $12, while Intel is only about 14 times. The gap will narrow, based on analysts' forecast of two big profits in 2006. As a warning for the future Intel will strive to enhance revenue, and then AMD revenue growth rate will slow down.

Nevertheless, investors still tend to AMD, willing to invest more in the expected future earnings growth for AMD. Some investment advisers said that in the long run, AMD's stock is more valuable, but there are some investors believe that Intel's stock risk is low, low prices.

Fund manager Kevin Landis believes that although the AMD's higher stock price, but the appreciation potential is relatively large, because AMD has a better profit prospects, and the current Intel's share price rise is too small. And by virtue of cooperation with Lenovo Inc, and recently broke the monopoly of Intel, AMD's market share continues to expand.

Intel said this month that Intel's first quarter earnings would be lower than previously expected, and margins would fall as a result of competitive pressures.

Glen, an analyst at Yeung, said Intel's real earnings would be even lower than the conservative estimates of companies and Wall Street bankers, and that Intel's earnings could be 25% less than expected. Even so he is still optimistic about Intel's stock, the proposed purchase.

In view of the current AMD stock market trends and market, there will certainly be different views, but he believes that Intel will cut prices for customers. Given Intel's pricing strategy in the chip market as well as its big brother status, coupled with the excitement of the new version of Microsoft's Vista operating system comes out, Intel's prospects for the stock has been guaranteed.

A news editor is also optimistic about Intel's stock, he said AMD is a strong opponent, but it is possible to break the monopoly of Intel, Intel's stock market shows that Intel in the near future encounter setbacks, but Intel broad market share and long-term innovation efforts will let Intel out of the woods.