In the fast-evolving semiconductor industry, two prominent players are vying for investor attention: Advanced Micro Devices, Inc. (AMD) and Analog Devices, Inc. (ADI). Both companies share a strong presence in the technology sector, focusing on innovation and specialized product offerings. AMD is renowned for its computing and graphics solutions, while ADI excels in analog and mixed-signal technologies. As we delve into this analysis, I will help you determine which company might be the most compelling investment opportunity today.
Table of contents
Company Overview
Advanced Micro Devices, Inc. Overview
Advanced Micro Devices, Inc. (AMD) is a leading semiconductor company that designs and manufactures a wide array of products including microprocessors, graphics processing units (GPUs), and system-on-chip (SoC) solutions. Known for its innovation, AMD operates two main segments: Computing and Graphics, and Enterprise, Embedded and Semi-Custom. The company’s mission is to drive the next generation of computing and graphics technology, enabling high-performance solutions for personal computers, data centers, and gaming consoles. Headquartered in Santa Clara, California, AMD aims to deliver superior performance and efficiency, competing vigorously with industry giants. With a market capitalization of approximately $353B, AMD remains a key player in the technology sector.
Analog Devices, Inc. Overview
Analog Devices, Inc. (ADI) specializes in the design and manufacture of integrated circuits and subsystems that utilize analog, mixed-signal, and digital signal processing technologies. The company’s mission focuses on solving complex engineering challenges in various sectors, including automotive, communications, and industrial markets. ADI’s product offerings include data converters, power management solutions, and high-performance amplifiers, catering to a diverse clientele. Established in 1965 and based in Wilmington, Massachusetts, ADI boasts a market capitalization of around $131B and is committed to advancing technology that connects and enhances the digital and physical worlds.
Key similarities and differences
Both AMD and ADI operate within the semiconductor industry, focusing on innovation and technological advancement. However, AMD primarily emphasizes high-performance computing and graphics, while ADI concentrates on analog and mixed-signal solutions for a broader range of applications, including automotive and industrial sectors. Their distinct product offerings reflect their unique market positions and target audiences.
Income Statement Comparison
The following table provides a comparative analysis of the most recent income statements for Advanced Micro Devices, Inc. (AMD) and Analog Devices, Inc. (ADI).
| Metric | AMD | ADI |
|---|---|---|
| Market Cap | 353.04B | 131.18B |
| Revenue | 25.79B | 11.02B |
| EBITDA | 5.26B | 5.03B |
| EBIT | 2.08B | 3.03B |
| Net Income | 1.64B | 2.27B |
| EPS | 1.01 | 4.59 |
| Fiscal Year | 2024 | 2025 |
Interpretation of Income Statement
In the latest fiscal year, AMD reported a revenue increase to 25.79B, reflecting a growth trend compared to previous years. However, its net income is slightly lower than ADI’s 2.27B, indicating that while AMD grows, it may be facing challenges in maintaining net profitability. ADI demonstrates strong operational efficiency with stable margins and a high EPS of 4.59, suggesting effective cost management. AMD’s margins remain a point of concern, particularly as competition intensifies, signaling the need for strategic adjustments to enhance profitability further.
Financial Ratios Comparison
In this section, I present a comparative analysis of the most recent revenue and financial ratios for Advanced Micro Devices, Inc. (AMD) and Analog Devices, Inc. (ADI).
| Metric | AMD | ADI |
|---|---|---|
| ROE | 2.85% | 6.70% |
| ROIC | 2.49% | 5.55% |
| P/E | 123.59 | 51.05 |
| P/B | 3.52 | 3.42 |
| Current Ratio | 2.62 | 2.19 |
| Quick Ratio | 1.83 | 1.68 |
| D/E | 0.04 | 0.25 |
| Debt-to-Assets | 3.20% | 17.90% |
| Interest Coverage | 20.65 | 9.45 |
| Asset Turnover | 0.37 | 0.23 |
| Fixed Asset Turnover | 10.63 | – |
| Payout ratio | 0.00 | 84.88% |
| Dividend yield | 0.00% | 1.66% |
Interpretation of Financial Ratios
The financial ratios indicate that ADI demonstrates stronger profitability with higher ROE and ROIC compared to AMD. AMD’s P/E ratio suggests that it is valued higher than ADI, reflecting investor expectations for growth. However, AMD maintains a lower debt-to-assets ratio, indicating stronger financial stability. ADI’s higher payout ratio and dividend yield may appeal to income-focused investors, but its financial leverage is significantly higher. Overall, both companies have strengths and weaknesses that require careful consideration based on individual investment strategies.
Dividend and Shareholder Returns
Advanced Micro Devices, Inc. (AMD) does not pay dividends, reflecting its focus on reinvesting for growth amid a competitive landscape. Instead, AMD emphasizes share buybacks to enhance shareholder value, though the lack of dividends raises concerns about sustainable income for investors. Conversely, Analog Devices, Inc. (ADI) offers a dividend yield of 1.6% with a payout ratio of approximately 85%, indicating a commitment to returning capital while balancing growth initiatives. Overall, ADI’s dividend strategy appears more supportive of long-term value creation compared to AMD’s approach.
Strategic Positioning
In the semiconductor market, Advanced Micro Devices, Inc. (AMD) holds a significant market share with its diverse range of products, particularly in computing and graphics. AMD faces competitive pressure from Analog Devices, Inc. (ADI), which specializes in analog and mixed-signal ICs, catering to various sectors including automotive and industrial. Both companies are navigating technological disruptions, with AMD focusing on high-performance computing and ADI enhancing signal processing capabilities. This competitive landscape demands continuous innovation and strategic positioning to maintain market relevance.
Stock Comparison
In this section, I will analyze the weekly stock price movements and trading dynamics of Advanced Micro Devices, Inc. (AMD) and Analog Devices, Inc. (ADI) over the past year, highlighting key trends and performance metrics.
Trend Analysis
AMD: Over the past year, AMD’s stock has experienced a substantial price increase of 56.97%, indicating a bullish trend. The stock has shown acceleration in its upward movement, with notable highs reaching 256.12 and lows at 85.76. The standard deviation of 35.8 suggests moderate volatility. In the recent period from September 14, 2025, to November 30, 2025, the price change was 37.18%, with a trend slope of 7.57, further supporting the bullish outlook.
ADI: Analog Devices, Inc. has also demonstrated a strong performance with a 42.24% increase over the past year, classifying it as a bullish trend. However, the trend is currently showing deceleration. The stock reached a high of 265.34 and a low of 164.6, with a standard deviation of 19.28, indicating less volatility compared to AMD. In the recent timeframe from September 14, 2025, to November 30, 2025, ADI’s price change was 8.21%, accompanied by a slight downward trend slope of -0.11, which may suggest a need for cautious observation moving forward.
Analyst Opinions
Recent analyst recommendations for both Advanced Micro Devices, Inc. (AMD) and Analog Devices, Inc. (ADI) indicate a consensus rating of “Buy.” Analysts, including those from reputable firms, have provided a “B” rating for both companies. For AMD, the strengths lie in its return on assets and equity, despite a lower price-to-earnings score. Similarly, ADI showcases strong discounted cash flow and return metrics, although it also faces challenges in its price-to-earnings evaluation. Given this analysis, I remain cautiously optimistic about both stocks for the current year.
Stock Grades
As we assess the current stock ratings for Advanced Micro Devices, Inc. (AMD) and Analog Devices, Inc. (ADI), we observe that several reputable grading companies have provided their insights.
Advanced Micro Devices, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Mizuho | maintain | Outperform | 2025-11-12 |
| Evercore ISI Group | maintain | Outperform | 2025-11-12 |
| Rosenblatt | maintain | Buy | 2025-11-12 |
| B of A Securities | maintain | Buy | 2025-11-12 |
| Morgan Stanley | maintain | Equal Weight | 2025-11-12 |
| Wedbush | maintain | Outperform | 2025-11-12 |
| Piper Sandler | maintain | Overweight | 2025-11-12 |
| Wells Fargo | maintain | Overweight | 2025-11-12 |
| Roth Capital | maintain | Buy | 2025-11-12 |
| Wedbush | maintain | Outperform | 2025-11-10 |
Analog Devices, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Morgan Stanley | maintain | Overweight | 2025-11-26 |
| JP Morgan | maintain | Overweight | 2025-11-26 |
| Evercore ISI Group | maintain | Outperform | 2025-11-26 |
| Benchmark | maintain | Buy | 2025-11-26 |
| B of A Securities | maintain | Buy | 2025-11-26 |
| Baird | maintain | Outperform | 2025-11-26 |
| Wells Fargo | maintain | Equal Weight | 2025-11-26 |
| Truist Securities | maintain | Hold | 2025-11-26 |
| Cantor Fitzgerald | maintain | Overweight | 2025-09-30 |
| Benchmark | maintain | Buy | 2025-08-21 |
In summary, both AMD and ADI have maintained strong ratings from various respected grading firms, specifically with multiple “Outperform” and “Buy” recommendations. This indicates a generally positive outlook for these stocks, suggesting they are seen as solid choices for investors.
Target Prices
The consensus target prices for Advanced Micro Devices, Inc. (AMD) and Analog Devices, Inc. (ADI) indicate a positive outlook from analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| AMD | 380 | 200 | 295.24 |
| ADI | 300 | 258 | 283.58 |
For AMD, the consensus target price of 295.24 suggests substantial upside potential compared to the current price of 217.52. Similarly, ADI’s target consensus of 283.58 also reflects a healthy growth expectation relative to its current price of 265.34.
Strengths and Weaknesses
The following table presents a comparative analysis of the strengths and weaknesses of Advanced Micro Devices, Inc. (AMD) and Analog Devices, Inc. (ADI).
| Criterion | AMD | ADI |
|---|---|---|
| Diversification | Moderate | High |
| Profitability | Moderate | High |
| Innovation | High | Moderate |
| Global presence | Strong | Strong |
| Market Share | Growing | Established |
| Debt level | Low | Moderate |
In summary, while AMD exhibits strong innovation and growth potential, ADI stands out with its high profitability and diversified operations. Both companies maintain a robust global presence.
Risk Analysis
In this section, I present a comparative analysis of the key risks associated with two semiconductor companies, Advanced Micro Devices, Inc. (AMD) and Analog Devices, Inc. (ADI).
| Metric | AMD | ADI |
|---|---|---|
| Market Risk | High | Moderate |
| Regulatory Risk | Moderate | Moderate |
| Operational Risk | High | Low |
| Environmental Risk | Moderate | Low |
| Geopolitical Risk | High | Moderate |
Both AMD and ADI face considerable market and operational risks, particularly in the volatile semiconductor sector. AMD’s operational risk remains high due to its aggressive expansion strategy, while ADI benefits from a more stable operational profile.
Which one to choose?
In comparing Advanced Micro Devices, Inc. (AMD) and Analog Devices, Inc. (ADI), both companies exhibit solid fundamentals but differ in key areas. AMD has a higher revenue growth rate and significant market cap ($203B), but its price-to-earnings (P/E) ratio is notably high at 124, indicating potential overvaluation. ADI, with a market cap of $116B and a more modest P/E ratio of 51, shows stable profitability, with a net profit margin of 20.6%. Analysts rate both companies as “B,” reflecting their solid performance. However, AMD’s stock trend is bullish, showing a price change of 56.97%, while ADI’s trend is slightly weaker, at 42.24%.
For growth-oriented investors, AMD may be the preferred choice due to its aggressive expansion. On the other hand, those prioritizing stability might favor ADI, given its strong profit margins and lower valuation metrics.
Specific risks include AMD’s higher competition in the semiconductor market and ADI’s exposure to fluctuating demand cycles.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of Advanced Micro Devices, Inc. and Analog Devices, Inc. to enhance your investment decisions:
