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Stock Analyst Update

AMD Is neither Chump nor Chimp in Chip Market

Chipmaker's stock still appears to be very cheap.

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For three consecutive quarters, Advanced Micro Devices (AMD) has more than adequately proved that it's up to the task of competing with industry gorilla Intel (INTC). While the stock is up more than 200% year to date, AMD's shares still seem to be trading at a reasonable price.

The most obvious reason behind AMD's standout quarter was the continuing favorable PC market. The company posted revenue growth of 7% over the prior quarter. This number is impressive, both because the second quarter is typically slow and because AMD's growth exceeded the growth number recently reported by Intel.

Jeremy Lopez does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.