AMD vs Intel Comparison

Advanced Micro Devices (AMD) is feeling the pain from a high of $40.00 last year to currently trading at $14.28. From Jan 05 to Jan 06, for those who did their homework and bought in and figured out AMD's dual core chip processors were going to takeaway market share from Intel, congrats. But make no mistake, AMD was a speculative play and if you were greedy and didn't take a profit, you would have wasted your time and made no money buying the stock. Here's why it was a speculative stock play and not a long term play:

AMD Yearly Earnings

2006: -0.34
2005: 0.40
2004: 0.25
2003: -0.79
2002: -3.81
2001: -0.18
2000: 2.95
1999: -0.30
1998: -0.36
1997: -0.08
1996: -0.26

This is not rocket science. Just by looking at the earnings tells you this is not a great company. Earnings is anything but predictable. Personally, I cannot stomach this roller coaster ride. Compare this with the earnings with Intel (INTC)

Intel Yearly Earnings

2006: 0.86
2005: 1.40
2004: 1.16
2003: 0.85
2002: 0.46
2001: 0.19
2000: 1.51
1999: 1.05
1998: 0.87
1997: 0.97

Not one year did INTEL lose money. Just to let you know, I am biased because I did buy some Jan 08 20 strike Call options foolishly when AMD was taking market share last year and I have avg down to a price of $2.95. Finally, it looks like it's going higher :)