Intel vs AMD: Why the Risk-Reward Is Skewed in Intel Stock’s Favor

After a long time, Intel (INTC) stole the limelight from Advanced Micro Devices (AMD), reminding old-timers of the good old days, when everything Intel did was considered the gold standard of computing. The company’s Q1 2026 earnings beat and impressive guidance have allowed investors to entertain the thought of the firm gaining back its lost glory. Just like in the past, AMD finds itself operating in the shadows of its main competitor, and it is quite likely the old pattern will repeat, giving Intel the advantage.

Since Intel’s earnings report, AMD and Intel stocks have both rallied. The unprecedented CPU demand has forced investors to buy first and ask questions later. This approach has worked for Intel shareholders but might backfire for AMD backers. HSBC just came out with its earnings preview and believes AMD’s 2026 server CPU upside, where it held an advantage over Intel, is capped due to capacity constraints. This could continue in 2027 as well. The firm therefore expects no earnings surprise and guidance in line with previous expectations on May 5.