Forget Intel: Consider These 2 Billionaire Stocks to Buy Instead

Intelhis (INTC -3.81%) the stock has been battered and battered this month and august has only just begun. The company’s share price has fallen 34% since July 30 amid the selloff that has affected countless stocks. Growing recession fears and dismal earnings from Intel sent investors into a panic.

While I’m a strong believer in holding the market down rather than selling a tech stock like Intel, that doesn’t necessarily mean now is the time to buy more.

Data by YCharts.

The chart above shows that despite recent declines, Intel’s price-to-earnings (P/E) ratio is significantly higher than other tech stocks. Advanced microdevices (AMD -1.50%) and Alphabet (GOOGL 1.01%) (GOOG 0.95%) it offers similar exposure to emerging markets such as artificial intelligence (AI) and cloud computing, but trades at a better value than Intel.

In addition to the fact that Intel shares are poorly valued, its most recent quarter (2Q24) missed revenue and earnings per share (EPS) expectations. Meanwhile, recent earnings from AMD and Alphabet illustrate a positive growth trajectory.

So forget about Intel and consider buying these two million dollar stocks.

1. Advanced microdevices

AMD shares have fallen 24% in the past month as tech stocks have fallen out of favor. However, the company boasts a long history of growth that has created many millionaires, with its share price up more than 3,000% since 2014.

The company has enjoyed immense success over the years, assuming a crucial role in the chip market. AMD hardware powers products across the technology spectrum, from gaming consoles such as SonyPlayStation 5 for PCs, laptops, data centers and consumer-built AI models. As a result, AMD is easily one of the best stocks to gain exposure to various areas of technology.

AMD’s closest competitors are Nvidia and Intel, and the three companies are fierce rivals in AI chips. Nvidia dominates the industry, while Intel has yet to make real progress. However, recent earnings indicate AMD’s AI division is on a promising growth path and gaining on Nvidia.

In Q2 2024, AMD’s revenue rose 9% year-over-year, beating expectations by $120 million. Meanwhile, earnings per share of $0.69 beat estimates by $0.01. The quarter benefited from a 115% year-over-year revenue increase in the AI-focused data center segment and a 49% increase in customer sales.

AMD’s gaming segment suffered from declines in sales of semi-custom chips, with revenue down 59%. However, that didn’t stop solid growth in the quarter as the company pivoted its business toward AI. Operating income for the period reached $269 million, improving significantly from the $20 million loss reported a year ago.

AMD’s Q2 2024 demonstrates that it is enjoying impressive returns from its consistent AI investment and industry gains. Its quarterly free cash flow is up 81% year-to-date, boosting its spending power. Besides being a better value stock, AMD is an unusual buy over Intel right now.

2. The alphabet

Alphabet’s share price has fallen 17% since the start of July in tandem with the technology selloff. However, its forward P/E of 21 makes it one of the best valued tech stocks and too good to pass up. Meanwhile, like AMD, recent earnings point to a profitable future for the tech giant.

Google reported its Q2 2024 earnings in late July, with revenue up 14% year over year to $85 billion. The quarter saw solid growth in advertising, with sales up 11%. However, Google Cloud delivered the biggest gains, with revenue up 28% year-over-year and outpacing competitors Amazon Web Services and Microsoft in cloud growth for that period.

At the start of the year, Alphabet appeared to be lagging behind its cloud rivals, but earnings show it’s quickly catching up. In addition to impressive revenue growth, Google Cloud’s operating income nearly tripled and topped $1 billion for the first time. Success in cloud computing bodes well for Alphabet as it diversifies its revenue, allowing it to lean less on advertising and secure a promising role in AI.

Alphabet has a long history of making people rich and has undoubtedly created more than a few millionaires, with its stock up 470% over the past decade. At its bargain price, Alphabet stock is worth picking up over Intel and is a great way to invest in technology.