<div id="readability-page-1">Intel (INTC -1.61%) has been one of the more disappointing stocks in modern market history. Shares of the veteran chipmaker, which helped pioneer the digital age, are down almost 15% over the last 20 years, as the company missed out on major technology transitions such as mobile and now artificial intelligence (AI), including passing up an opportunity to invest in OpenAI even as recently as in 2017. Meanwhile, competitors like AMD and Nvidia have soared past Intel, as chip stocks have generally outperformed over the last decade, even as Intel has been a laggard. Intel gave investors a dash of hope earlier this year, hiring Lip-Bu Tan as its new CEO. Tan is the former Cadence Design Systems CEO, who had resigned from Intel's board last August after growing frustration with the company's lack of risk-taking and AI strategy. However, the company still faces structural headwinds and a legacy of poor strategic decisions that will be difficult to unwind. Looking ahead five years, investors are hopeful that Tan can drive a comeback at the chip giant, but I think these two tech stocks will leapfrog Intel over the next two years. <div><img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MTQ4NDEvaW52ZXN0b3ItcmVhZGluZy10aGUtbmV3c3BhcGVyLmpwZyZ3PTcwMA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="466" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MTQ4NDEvaW52ZXN0b3ItcmVhZGluZy10aGUtbmV3c3BhcGVyLmpwZyZ3PTcwMA"/>Image source: Getty Images. </div> <h2>1. AppLovin</h2> AppLovin (APP 3.50%) was one of the brightest growth stories of 2024, as shares of the mobile game developer and adtech company jumped up more than 700% last year. Following worries about softening consumer sentiment and President Trump's trade war, AppLovin's market cap has retreated to $81 billion, lower than Intel's $88.6 billion, as of the end of this week. AppLovin is a good bet to be more valuable than Intel in the next five years because it's growing so rapidly. In 2024, the company's advertising revenue jumped 75% to $3.22 billion, and it recently sold its mobile apps business so it can focus on the core adtech business. The company's growth is attributable to the Axon AI engine it built from scratch using its own mobile app games to test and develop --an advantage most adtech companies don't have. Now, the company is expanding into areas like connected TV (CTV), e-commerce, and other industry verticals, showing it's only just begun to tap the mobile ad market, as it has traditionally focused on mobile game developers. With the stock down roughly 50% from its peak now, AppLovin also looks much more affordable at a price-to-earnings ratio of 52. <h2>2. Micron</h2> Micron (MU -0.77%) has a number of things in common with Intel, as it's one of the few other integrated device makers in the U.S., meaning it both designs and manufacturing chips. Like Intel, Micron also has a lot of exposure to the business cycle, so prices for the memory chips that it makes can change rapidly, according to supply/demand dynamics. However, Micron's recent results show the company continues to benefit from the AI boom, as its high-bandwidth memory (HBM) chips are in high demand for data centers. In the fiscal second quarter that ended in February, revenue jumped 38% to $8.05 billion, paced by a surge in data center revenue, as the data center biz now make up more than half of its revenue. Its margins have also significantly improved thanks to stronger demand and a better pricing environment. Gross margin doubled to 36.8%, and adjusted earnings per share jumped from $0.42 to $1.56. Over the coming years, Micron should benefit from its leading position as an integrated memory chip company and increasing demand from AI, as its biggest customer is Nvidia. The stock also has an advantage over Intel in valuation. Micron trades at a price-to-earnings ratio of 17 right now. If its data center segment continues to boom, the stock should surge higher. Currently, Micron has a market cap of $79.4 billion, meaning it won't take much for it to overtake Intel in valuation. The company just has to keep doing what it's doing. If chip demand remains strong and the AI boom continues, Micron looks an easy winner. </div>

NVDA

Intel has struggled in the market, with shares down nearly 15% over 20 years, missing key tech transitions. Competitors AMD and Nvidia have outperformed. New CEO Lip-Bu Tan brings hope, but challenges remain. Analysts predict AppLovin and Micron will surpass Intel in value within five years. AppLovin's rapid growth in adtech and Micron's strong demand for memory chips, especially in AI, position them favorably. AppLovin's market cap is $81 billion, while Micron's is $79.4 billion, both poised to overtake Intel's $88.6 billion market cap if trends continue.

- Intel has struggled in the market, with shares down nearly 15% over the past 20 years, missing key technology transitions while competitors like AMD and Nvidia have thrived.  
- AppLovin has shown remarkable growth, with a 700% increase in shares last year, and is expected to surpass Intel in value due to its rapid expansion in the adtech sector.  
- Micron is benefiting from the AI boom, with a 38% revenue increase driven by high demand for its memory chips, positioning it to potentially overtake Intel in market valuation.

Prediction: 2 Stocks That Will Be Worth More Than Intel 5 Years From Now