---
title: "If you had to choose between Intel and AMD for investment, which one would you pick?"
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/34772725.md"
description: "The topic of Intel wanting to do foundry work for AMD is quite interesting. Here's my brief take: Background: Intel has its own foundry business (Intel Foundry Services, IFS), aiming to expand its wafer fabs from solely serving its own CPUs to becoming like TSMC, providing foundry services for external clients. Currently, AMD's CPU/GPU chips are mostly manufactured by TSMC, especially advanced processes (7nm, 5nm, 4nm). Intel's motivation: Capacity utilization: Its own CPU market share is declining..."
datetime: "2025-10-02T20:58:49.000Z"
locales:
  - [en](https://longbridge.com/en/topics/34772725.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/34772725.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/34772725.md)
author: "[基进基出](https://longbridge.com/en/profiles/15022447.md)"
---

# If you had to choose between Intel and AMD for investment, which one would you pick?

The topic of Intel wanting to manufacture for AMD is quite interesting. Here's my take:

**Background**:

-   Intel has its own foundry business (Intel Foundry Services, IFS), aiming to expand its wafer fabs from solely serving its own CPUs to becoming an external foundry like TSMC.
-   AMD's current CPU/GPU chips are mostly manufactured by TSMC, especially advanced nodes (7nm, 5nm, 4nm).

**Intel's Motivation**:

-   **Capacity Utilization**: Its own CPU market share is declining, and the foundry business needs customers.
-   **Strategic Significance**: If it can secure AMD orders, it proves IFS can truly compete with TSMC.
-   **U.S. Domestic Manufacturing Advantage**: Especially under geopolitics and U.S. government subsidies (CHIPS Act), AMD might partially shift orders to Intel for supply chain security.

**AMD's Considerations**:

-   **Pros**:
    -   Reduce reliance on TSMC for a more robust supply chain.
    -   Potentially gain better domestic subsidies and government support.
-   **Concerns**:
    -   Intel is both a foundry and its biggest competitor, creating "conflict of interest" and IP risks.
    -   TSMC still leads in yield and stability for advanced nodes; AMD won’t easily hand over its flagship products.

**Realistic Possibility**:

-   Short-term, AMD is unlikely to outsource core CPU/GPU to Intel—too risky.
-   But AMD might outsource non-core chips (e.g., chipsets, I/O dies, or legacy-node auxiliary chips) to Intel as a trial.
-   This would satisfy the U.S. government (supply chain diversification) and pressure TSMC for better terms.

**My Conclusion**:  
       If this materializes, it’d be a "political over commercial" move. AMD won’t outsource core CPUs but might delegate some edge chips to help Intel’s foundry business stabilize. Long-term, Intel’s goal of turning IFS into "America’s TSMC" with AMD as a client is more symbolic than substantive in order volume.

       If choosing between Intel and AMD now, I lean toward Intel short-term—cheap valuation, policy subsidies, and potential stock rebound if it secures AMD trial orders. Thoughts?

$Intel(INTC.US)

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## Comments (4)

- **稳持能赢 · 2025-10-03T02:28:48.000Z · 👍 2**: Two cognitive loopholes: 1. Don't equate U.S. political-business relations with those in China—no consequences for refusal. 2. Production costs: Using Intel as the foundry will undoubtedly result in significantly higher costs than TSMC, which is fatal.My assessment of Intel's recent series of events
  - **临** (2025-10-03T02:57:05.000Z): Agreed, the iteration of chip foundry processes is too fast, and the gap is so large that TSMC is irreplaceable. If Intel were in the East, it could indeed be elevated to the same level as TSMC. Compa
  - **engineer** (2025-10-03T13:14:33.000Z): No one likes to hear the truth these days.
- **鬣老二 · 2025-10-03T00:21:49.000Z**: No matter how you look at it, Intel is the choice. AMD's rise is still due to Intel, putting the cart before the horse.