• Intel and Advanced Micro Devices (AMD) could rise as part of a second-half “catch-up,” Melius Research said. The companies, alongside Apple and IBM, were among the analysts’ “AI Laggards” in the first six months of 2024.
  • The analysts noted a pattern in 2023 where “underdogs” underperformed in the first half and then caught up in the second half, while some “AI winners” experienced the opposite effect.
  • Melius said AMD and Intel could benefit from Microsoft’s Copilot+ PCs, while Apple could benefit from an iPhone 16 upgrade cycle and IBM is positioned to gain from infrastructure software strength.

Intel (INTC) and Advanced Micro Devices (AMD) could see significant gains in the latter half of 2024, according to Melius Research. Dubbed “AI Laggards” for the start of the year, both companies showed promising signs Monday, with Intel shares rising over 5% and AMD up 3%.

Melius analysts suggest that the pattern from 2023, where early “AI winners” paused and “underdogs” gained in the second half, could repeat. They highlight AMD, Intel, Apple (AAPL), and IBM as potential beneficiaries of a “catch-up” trade driven by big tech’s AI investments.