Qualcomm vs. Intel: Which Chip Stock is the Better Buy Now?

Core Insights - Qualcomm and Intel are leading semiconductor companies focusing on AI, connectivity, and edge computing, with significant investments in advanced chip technologies [1][3] - Qualcomm is transitioning from a mobile communications firm to a connected processor company, leveraging its 5G technology and diverse revenue streams [4][5] - Intel is shifting towards data-centric businesses, emphasizing AI and autonomous driving, while also implementing a foundry operating model to enhance efficiency and transparency [2][7] Qualcomm Overview - Qualcomm is well-positioned for long-term revenue growth due to strong 5G adoption and a diversified revenue stream [4] - The company is expanding its mobile chipsets market with innovative products, including the Snapdragon G Series for gaming and advanced AI PC chipsets [5] - Despite its strengths, Qualcomm faces competition from Intel in the AI PC market and challenges from Samsung and MediaTek in the smartphone sector [6] Intel Overview - Intel is focusing on expanding manufacturing capacity as part of its IDM 2.0 strategy, aiming to become a leading foundry [7][8] - The company has seen significant traction in AI PCs, with expectations to ship over 100 million units by the end of 2025 [9] - However, Intel faces challenges due to its reliance on the Chinese market amid increasing competition from domestic chipmakers and restrictions on high-tech exports [10] Financial Performance - Qualcomm's fiscal 2026 sales are expected to grow by 2.8%, with EPS rising by 0.9% [11] - Intel's 2025 sales are projected to decline by 1.3%, but EPS is expected to grow significantly by 346.1% [13] - Over the past year, Qualcomm's stock has increased by 7%, while Intel's has surged by 43% [14] Valuation Comparison - Intel appears more attractive from a valuation perspective, with a price/sales ratio of 3.04 compared to Qualcomm's 3.89 [16] - Long-term earnings growth expectations are 6.1% for Qualcomm and 7.1% for Intel, indicating a slight edge for Intel in terms of growth potential [19]