Advanced Micro Devices vs Texas Instruments Which Is a Better Investment?

Advanced Micro Devices (AMD) and Texas Instruments (TI) are two leading semiconductor companies that have dominated the technology sector for decades. While both companies have witnessed significant growth in recent years, investors must carefully analyze their financial performance, market position, and competitive advantages before making any investment decisions. AMD is known for its high-performance processors and graphics cards, whereas TI is a pioneer in analog and embedded processing solutions. This comparison between AMD and TI stocks will help investors understand the opportunities and risks associated with investing in these two industry giants.

Advanced Micro Devices or Texas Instruments ?

When comparing Advanced Micro Devices and Texas Instruments , 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 Texas Instruments .

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 Texas Instruments has a dividend yield of 2.75%. 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, Texas Instruments reports a 5-year dividend growth of 13.80% year and a payout ratio of 95.39%.

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 Texas Instruments 's P/E ratio at 35.23. 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 Texas Instruments 's P/B ratio is 10.13.

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 Texas Instruments 's is 0.19%. 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 Texas Instruments 's ROE at 29.05%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $124.77 for Advanced Micro Devices and $188.30 for Texas Instruments . Over the past year, Advanced Micro Devices's prices ranged from $121.83 to $227.30, with a yearly change of 86.57%. Texas Instruments 's prices fluctuated between $155.46 and $220.39, with a yearly change of 41.77%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.