From Nasdaq: 2025-06-05 12:29:00

In the semiconductor industry, AMD and SMTC play vital roles. While AMD focuses on CPUs and GPUs, Semtech specializes in analog and mixed-signal solutions for IoT and 5G infrastructure. The industry is set to grow from $631.01 billion in 2025 to $958.93 billion by 2030, offering significant opportunities for both companies.

AMD’s data center revenues soared 57.2% in Q1 2025, driven by EPYC processors. Their EPYC Turin processors and Instinct AI accelerators have been key growth drivers. Additionally, collaborations with major hyperscalers like Oracle Cloud Infrastructure and Google Cloud have boosted their market presence.

Semtech saw record data center revenues in Q1 2026, with strong demand for CopperEdge and FiberEdge products. The company’s collaborations with cloud service providers and cable manufacturers position it well for future growth. Launches of innovative products like the CopperEdge portfolio further enhance its market share.

Despite a challenging macroeconomic environment, both AMD and SMTC have experienced share price declines in 2025. Valuation-wise, both stocks are currently overvalued with a Value Score of D. AMD trades at a higher Price/Sales ratio compared to SMTC, indicating potential differences in growth prospects.

Earnings estimates show promising outlooks for both companies. AMD is expected to see a 21.45% increase in 2025 earnings, while SMTC is projected to have an 88.64% year-over-year increase in fiscal 2026 earnings. Both companies have a history of beating earnings estimates, with SMTC showing a higher average surprise rate.

In conclusion, while both AMD and SMTC have growth potential in the semiconductor market, SMTC stands out with its higher earnings surprise history and innovative solutions. AMD’s expanding portfolio and partnerships offer growth opportunities, but stiff competition and regulatory challenges present risks. SMTC’s Zacks Rank of #2 makes it a more favorable pick compared to AMD’s Zacks Rank of #3.



Read more at Nasdaq: AMD vs. Semtech: Which Semiconductor Stock Is the Better Buy Now?