Buy Advanced Micro Devices (AMD) for the Intel news

According to several sources on the internets right now, Intel is about to report some surprisingly good numbers on Tuesday.

In theory, this should provide a boost to the whole sector. Why not buy AMD on Tuesday and sell before they report their sub-par numbers on Thursday?

Craig Berger, an analyst with FBR Capital Markets, predicted that Intel would report third quarter revenue Tuesday (Oct. 13) of between $9.7 billion and $10.3 billion, better than consensus analyst expectations of about $9.5 billion and above Intel's own revised target of between $8.8 billion and $9.2 billion.

Berger said third quarter PC builds grew 24.5 percent compared to the second quarter. Notebook builds improved by 28 percent quarter-to-quarter, while desktop builds grew by 19 percent, he said, citing checks with the world's top notebook ODMs and desktop motherboard makers.

AMD Chart

Of course, you could also play the Semiconductors as a whole buy investing in the Semiconductor HOLDRs (ETF) (Public, NYSE:SMH). But AMD may get more bounce to the ounce.

SMH Chart