Why Intel Popped, but AMD and Nvidia Dropped Today

What happened
$Advanced Micro Devices(AMD.US)$ It's Jan. 5 and at long last, the 2022 Consumer Electronics Show (CES 2022) is underway in Las Vegas.

In contrast to last year's fully virtual event, this year's CES is going the hybrid route, with some exhibitors coming in person while others appearing only virtually. One thing that is definitely not virtual -- but real -- is the effect that the CES presentations seem to be having on tech stock prices, and semiconductor stocks in particular.

As chipmakers demo their wares today, shares of Intel $Intel(INTC.US)$ (a "featured exhibitor" at CES 2022) are enjoying a nice 2.4% pop in afternoon trading, as of 2:22 p.m. ET. In contrast, Intel rivals Nvidia $NVIDIA(NVDA.US)$ and Advanced Micro Devices (NASDAQ:AMD) are moving in the opposite direction -- down 4.3% and 4.6%, respectively.

Now what
At least one analyst still thinks the advantage lies with Intel, however. In a note out this morning, Northland Capital Markets said it is upgrading Intel stock to outperform based on its view that Intel has laid out for investors a coherent strategy to reverse its decline "for the first time in many years," reports StreetInsider.com.

More significant for investors, Northland simply thinks that Intel stock at less than 10 times earnings is a better bargain than "high multiple stocks" such as AMD (which costs 43 times earnings today) and Nvidia (which costs 93 times earnings). In contrast to its pricier rivals, which may suffer from "multiple compression" this year (i.e., investors may not want to pay high multiples of earnings to own the stocks, resulting in falling stock prices), low-priced Intel stock could rise as much as 14% in value over the course of the next year.

Part of the content is taken from Yahoo.