InvestBattle | Advanced Micro Devices vs Qualcomm

April 5, 2024by

As we noted in last week’s issue, over the past three months, one of the leaders of growth in the S&P 500 index has been the Semiconductors & Semiconductor Equipment industry +39.0%.

Some of the largest (by market capitalization) companies in this industry: Advanced Micro Devices ($291.6B) – specializes in the development of CPU and GPU processors for data centers, PCs and game consoles and Qualcomm ($188.9B), which develops chips for smartphones and home appliances for well-known manufacturers such as ASUS, LG, ZTE.

According to the latest quarterly reporting data, we analyzed each company’s profitability, strength, and efficiency criteria using the methodology of Stanford University professor Joseph Piotroski.

As you can see, in terms of fundamentals, both companies are currently performing quite strongly. Advanced Micro Devices outperforms Qualcomm in terms of efficiency, and Qualcomm outperforms in terms of strength. Both companies look attractive for medium- and long-term investments.

Over the past 3 months, stocks of Advanced Micro Devices have risen by +23.5%, and Qualcomm – by +16.1% (S&P 500 index is up +9.7%). Advanced Micro Devices has outperformed its closest competitor and demonstrated better results compared to the index.

So, the winner in today’s battle is Advanced Micro Devices (AMD). Although Qualcomm is superior in terms of financing, Advanced Micro Devices’ business looks healthier in terms of operating margin, and its stock is showing better dynamics.

* This is not an investment recommendation. It is up to each individual to decide which criteria to favor when making an investment decision, taking into account their goals and individual risk tolerance.
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