Is Advanced Micro Devices a better buy than Intel Corporation?

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Advanced Micro Devices, Inc. (NASDAQ:AMD) is a strong buy as the price rallies at $119.67. Intel Corporation (NASDAQ:INTC) is also a buy at the price of $51.83.

However, for an investor interested in only one of the two stocks, the decision on which is the better buy can be advanced a little more.

Both companies are in the technology space, which remains highly resilient as the markets come under pressure. However, they behave in significantly different ways in the market. An assessment of the price chart indicates that Intel had a total return of only 7.80% since July 2019.

Comparatively, AMD returned 279.90% to the shareholders over the same period. The returns by AMD dwarf those of INTC, making it the ultimate winner.

AMD spectacularly higher returns compared to INTC

Source – TradingView

Fundamental differences between how the two stocks behave show that investors can benefit if they adopt unique trading techniques. For AMD, a buy-and-hold strategy is most effective since the stock is on a definite upward trend.

For INTC, the traders would need to closely follow price-chart patterns, which show long-term support at $45 and resistance at $64. This means that investors could benefit only by timing the market to catch the stock at the support and sell at the resistance. Still, doing so would not get the investor returns to the levels of AMD.

Summary

AMD is a definite winner in the competition for capital with INTC. AMD returned a total of 279% since July 2019. INTC returned only 7.80% over the same period. AMD is therefore a better buy.

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