Apple Inc. (AAPL)’s Innovation Isn’t Real, but Does it Matter?

Year to date, AMD is the standout winner. Its stock has increased almost 67%, but has also experienced its worst year since 2008. Its stock fell in 2008, 2010, 2011, and 2012. 2009 was a huge year for the stock, as it increased an incredible 348%. Obviously the stock has given shareholders a very bumpy ride in the past few years.

Intel’s stock is up almost 20% year to date, but has seen far better performance over the past five years. In the past five years, the stock has increased by about 14%. From 2008-2012 Apple’s stock was up over 200%, but it has fallen 14.4% so far this year. The chart below shows how they compare over the past five years.

AMD data by YCharts

Apple Inc. (NASDAQ:AAPL) appears to present the best valuation and performance, despite using Intel and AMD’s products. AMD provides products to arguably the world’s most popular company; however, the company is very expensive, and has performed worse than Intel and Apple. Intel falls in the middle of the road. It has solid, but not great, valuations, and fair performance.

Bottom line

Market exposure is a major consideration for potential investors. These companies exemplify that perfectly. AMD is a small company, with far greater risk. Things are either going great or awful. Intel appears to present a good opportunity for investors without too much risk. Apple isn’t going anywhere, and should provide lots of cash for its shareholders in the next few years.

The article Apple’s Innovation Isn’t Real, but Does it Matter? originally appeared on Fool.com and is written by Tyler Wofford.

Tyler Wofford has no position in any stocks mentioned. The Motley Fool recommends Apple and Intel. The Motley Fool owns shares of Apple and Intel. Tyler is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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