Forget Intel: Here Is the Chip Stock Wall Street Is Sleeping On

"Intel posted a GAAP net loss of $3.728 billion tied to a $4.07 billion Mobileye impairment, free cash flow of negative $3.867 billion, and an Intel Foundry segment that bled $2.51 billion in operating losses in Q4 FY25 alone. Q2 FY26 guidance calls for non-GAAP EPS of just $0.20, a sequential step down from the headline number everyone is celebrating. Intel even flagged the risk of a pause or discontinuation of Intel 14A if customer demand falls short, alongside ongoing U.S. government acquisition of significant equity interests that dilute existing holders."

"The reflex move is to rotate into NVIDIA ( NASDAQ:NVDA). At a $215.94 billion revenue base and 75.2% non-GAAP gross margins, NVIDIA is the most crowded long in the market. The room is full. The better seat is next door."

"Advanced Micro Devices ( NASDAQ:AMD) reported Q1 FY26 revenue of $10.253 billion, up 37.85% year over year, with non-GAAP EPS of $1.37 beating consensus by 5.88%. Three reasons it deserves the attention investors are wasting on Intel:"

"A named hyperscaler win at gigawatt scale. AMD has a commitment from Meta to deploy up to 6 gigawatts of AMD Instinct GPUs, with the first 1-GW powered by a custom MI450-based GPU. That is a concrete, signed-up anchor customer. Hyperscaler pipeline exceeding plan. CEO Lisa Su told investors that "Customer engagement around MI450 Series and Helios is strengthening, with leading customer"

Intel shows strong headline results but also large GAAP net losses tied to Mobileye impairment, negative free cash flow, and operating losses in the Intel Foundry segment. Guidance for Q2 FY26 points to lower non-GAAP EPS, and risks include potential pause or discontinuation of Intel 14A if demand falls short. Intel also faces dilution from U.S. government acquisition of significant equity interests. NVIDIA’s AI leadership is already heavily priced, with high revenue scale and strong gross margins. AMD reports accelerating growth with Q1 FY26 revenue up year over year and non-GAAP EPS above consensus. AMD benefits from a signed hyperscaler commitment from Meta for multi-gigawatt GPU deployment and strengthening customer engagement around MI450 Series and Helios.

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