To The Moon

Advanced Micro Devices leads chip gains as Intel looks to Italy for help

Advanced Micro Devices (NASDAQ:AMD)$AMD(AMD)$ was the top gaining stock in the semiconductor industry on Thursday, as analysts noted that its recent results, when coupled with weakness from Intel (NASDAQ:INTC), are likely to play out in AMD's favor.

Baird analyst Tristan Gerra, who recently downgraded Intel (INTC) after the company's disappointing second-quarter, noted that AMD (AMD) is likely to see further gains in the server market due to product delays at the Pat Gelsinger-led Intel (INTC).

"Intel's further push out of Sapphire Rapids, which is rapidly becoming a stale product before even launching, likely significantly accelerates server customer migration to AMD in 2023 in our view, and we expect meaningful market share gains as a result," Gerra wrote in a note to clients.

Gerra added that AMD's (AMD) fundamentals "continue to strengthen" and even though it is not immune to a slowdown in the PC market and consumer GPUs, is well positioned.

AMD (AMD) shares gained nearly 6% to $103.83 in mid-day trading, while competitor Nvidia (NVDA) tacked on nearly 1.5% to $191.64.

Advanced Micro Devices (AMD) slipped on Wednesday as concerns over third-quarter guidance outweighed the company's strong second-quarter results.

Intel (INTC) fell more than 1.5% to $36.63 even as the company is reportedly close to a $5B deal with the Italian government to build a packaging and assembly plant in the country.

The Italian government could fund as much as 40% of Intel's (INTC) investment in the country, Reuters reported, with the figure rising from $5B over time.

The plant is part of the semiconductor giant's plan to invest $88B in Europe over the next decade and both parties hope to have a deal in place by the end of August.