AMD shares hit another record high earlier Monday, continuing to best Intel, its rival chipmaker.
Intel stock plummeted to end last week after pushing back the launch of its 7-nanometer chip by six months.
The two stocks tell a very different story on the chips space. As AMD has rallied 49% this year, Intel has fallen 16%.
Nancy Tengler, chief investment officer at Laffer Tengler Investments, said it could be time to give Intel a chance.
“Given where these stocks are trading on a relative price-to-sales ratio basis, you want to take a fresh look at Intel. You’re getting paid a 2.6% yield, it’s growing about 7% per year, the earnings were actually good. The report was good, it’s just the delay in the 7-nanometer,” Tengler told CNBC’s “Trading Nation” on Friday.
Intel trades at 2.65 times forward sales, compared with AMD’s nearly nine times multiple.
Intel “might be just ready for a turn in growth in relative price-to-sales ratio. And I think that’s why we’re picking away at it,” said Tengler.
Craig Johnson, chief market technician at Piper Sandler, is on team AMD.
“Everybody likes a winner so we’d be buying AMD,” Johnson said during the same segment. “It’s clearly a tale of two different tapes at this point in time.”
“To me moving to a smaller chip size isn’t as material as the end-markets being stronger for AMD,” he said.
Johnson said the charts suggest AMD could have another 16% upside, drawing a measured objective to $80. The stock traded at $68.61 on Monday.
“I’m a buyer of AMD and avoiding Intel at this point in time,” he said.