Advanced Micro Devices vs Broadcom Which Offers More Value?

Advanced Micro Devices (AMD) and Broadcom are two prominent companies in the semiconductor industry, known for their innovative technologies and strong market positions. AMD is a leader in high-performance computing, graphics, and visualization technologies, while Broadcom specializes in designing and manufacturing a broad range of semiconductor solutions for various industries. Both companies have shown impressive growth and financial performance in recent years, making their stocks attractive options for investors seeking exposure to the fast-paced and dynamic semiconductor sector.

Advanced Micro Devices or Broadcom?

When comparing Advanced Micro Devices and Broadcom, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Advanced Micro Devices and Broadcom.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Advanced Micro Devices has a dividend yield of -%, while Broadcom has a dividend yield of 0.94%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Advanced Micro Devices reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Broadcom reports a 5-year dividend growth of 10.81% year and a payout ratio of 166.48%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Advanced Micro Devices P/E ratio at 112.59 and Broadcom's P/E ratio at 178.43. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Advanced Micro Devices P/B ratio is 3.61 while Broadcom's P/B ratio is 15.54.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Advanced Micro Devices has seen a 5-year revenue growth of 1.29%, while Broadcom's is 0.73%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Advanced Micro Devices's ROE at 3.24% and Broadcom's ROE at 8.62%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $124.77 for Advanced Micro Devices and $211.11 for Broadcom. Over the past year, Advanced Micro Devices's prices ranged from $121.83 to $227.30, with a yearly change of 86.57%. Broadcom's prices fluctuated between $104.15 and $228.70, with a yearly change of 119.59%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.