As investors, it's important to identify durable competitive advantages that exist. With that in mind, here are three companies I think have long-lasting competitive advantages, making their stocks worthy of investment today. Advanced Micro Devices (NASDAQ: AMD) is a leader in the semiconductor field, with numerous competitive advantages.
For many years, Intel (NASDAQ: INTC) dominated the central processing unit (CPU) market. Nvidia and Advanced Micro Devices (NASDAQ: AMD) present mounting threats to Intel's leadership, which is evident in the share price performance of these three companies over the last five years. Improving revenue performance has pushed the stock price up 65% year to date, and the company's new processors for the data center market could support further gains in 2024.
Advanced Micro Devices (NASDAQ: AMD) and Intel (NASDAQ: INTC) have been beneficiaries of the solid surge in semiconductor stocks this year despite both companies being hamstrung by weak sales of personal computers (PCs). While AMD stock is up an impressive 88% in 2023, Intel isn't far behind, with a 66% jump so far this year. Both stocks outperformed the PHLX Semiconductor Sector index's gains of 48% this year.