Intel vs AMD: The Ideal Long-Term Investment

Intel reported $13.6 billion revenue, up 7.2% year over year, with Data Center and AI rising 22% to $5.052 billion. A $3.728 billion GAAP net loss included a $4.07 billion Mobileye goodwill impairment. Non-GAAP gross margin was 41%, up 1.8 percentage points. AMD reported $10.253 billion revenue, up 37.9% year over year, with Data Center up 57% to $5.775 billion. Non-GAAP EPS was $1.37, beating the $1.29 estimate, and free cash flow rose 252.96% to $2.566 billion. AMD’s operating income increased 83.13% year over year, driven by accelerating AI infrastructure demand. Intel’s capex was $4.963 billion with negative free cash flow, while AMD converts capacity purchased from TSMC into operating leverage.

"Intel posted revenue of $13.6 billion, up 7.2% YoY, with Data Center and AI jumping 22% YoY to $5.052 billion. The headline ugly was a $3.728 billion GAAP net loss tied to a $4.07 billion Mobileye goodwill impairment. Lip-Bu Tan framed it as deliberate, saying the quarter marked a "sixth consecutive quarter of revenue above our expectations." Non-GAAP gross margin came in at 41%, up 1.8 percentage points, which is progress but still a long way from competitive."

"AMD looked like a different species. Revenue hit $10.253 billion, growing 37.9% YoY, with Data Center surging 57% to $5.775 billion. Non-GAAP EPS of $1.37 beat the $1.29 estimate, and free cash flow exploded 252.96% to $2.566 billion. Lisa Su called it "an outstanding first quarter, driven by accelerating demand for AI infrastructure.""

"Intel is spending heavily, with capex of $4.963 billion against negative free cash flow. The Intel 18A ramp in Arizona and the Terafab project alongside SpaceX, xAI, and Tesla are real, but Foundry profitability remains the open question. AMD is buying its capacity from TSMC and converting it straight into operating leverage, with operating income up 83.13% YoY."

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