AMD is expected to deliver faster growth and potentially more attractive for investors in 2025

From Nasdaq: 2025-01-01 07:18:00

Semiconductor companies have seen strong gains in the past year, with the PHLX Semiconductor Sector index up 21%. While Broadcom stock has surged 115%, Advanced Micro Devices has lost 14%. Both companies play vital roles in the semiconductor market designing chips for PCs, smartphones, gaming consoles, and data centers.

AMD’s future looks promising, with revenue up 18% in Q3 2024 and earnings per share rising 31%. Forecasts predict a 22% revenue increase in Q4 2024 and a 54% bottom line jump in 2025. Analysts expect AMD to capitalize on the growing demand for its AI GPUs and Ryzen PC processors.

Broadcom dominates the AI chip market and anticipates strong growth, with AI revenue potentially reaching $45 billion in three years. Despite a decline in non-AI semiconductor revenue, the company expects a recovery. Fiscal 2025 is projected to bring robust growth and continued success in AI for Broadcom.

Both AMD and Broadcom show promise for investors in 2025. While Broadcom has a rich valuation due to its AI market dominance, AMD is expected to deliver faster growth. Investors seeking a growth stock at an attractive valuation may prefer AMD over Broadcom for potential gains in the new year.



Read more at Nasdaq: Better Semiconductor Stock: AMD vs. Broadcom