In the fast-paced world of technology, Advanced Micro Devices, Inc. (AMD) and CEVA, Inc. are two key players in the semiconductor sector, each with unique strengths and innovation strategies. AMD, known for its cutting-edge CPUs and GPUs, has established a strong presence in computing and graphics. In contrast, CEVA focuses on licensing wireless connectivity and smart sensing technologies, catering to a diverse range of applications. This article will help you identify which company offers the most compelling investment opportunity.
Table of contents
Company Overview
Advanced Micro Devices, Inc. Overview
Advanced Micro Devices, Inc. (AMD) is a prominent player in the semiconductor industry, focusing on the development of high-performance computing and graphics solutions. Founded in 1969 and headquartered in Santa Clara, California, AMD offers a diverse range of products, including x86 microprocessors, GPUs, and semi-custom SoCs. The company’s mission is to deliver innovative computing solutions that empower consumers and businesses alike. With a market capitalization of approximately $353B, AMD is recognized for its competitive edge in the CPU and GPU markets, often battling with larger rivals for market share in both consumer and enterprise segments.
CEVA, Inc. Overview
CEVA, Inc. operates as a licensor of wireless connectivity and smart sensing technologies, catering primarily to semiconductor and original equipment manufacturer (OEM) clients. Established in 1999 and based in Rockville, Maryland, CEVA focuses on designing and licensing advanced digital signal processors, AI processors, and software solutions. Their mission is to enable partners to integrate cutting-edge technology into their products, particularly in mobile, IoT, and automotive applications. With a market cap of around $519M, CEVA is a key player in the niche market of DSP technologies, emphasizing innovation in connectivity and smart sensing.
Key similarities and differences
Both AMD and CEVA operate within the semiconductor industry and focus on providing advanced technological solutions. However, while AMD specializes in high-performance computing and graphics products, CEVA concentrates on licensing wireless connectivity and smart sensing technologies. This distinction defines their business models, with AMD primarily selling hardware and CEVA licensing its technology to OEMs.
Income Statement Comparison
The following table presents a comparison of key income statement metrics for Advanced Micro Devices, Inc. (AMD) and CEVA, Inc. (CEVA) for their most recent fiscal years.
| Metric | AMD | CEVA |
|---|---|---|
| Market Cap | 353B | 519M |
| Revenue | 25.79B | 107M |
| EBITDA | 5.26B | -3.41M |
| EBIT | 2.08B | -7.55M |
| Net Income | 1.64B | -8.79M |
| EPS | 1.01 | -0.37 |
| Fiscal Year | 2024 | 2024 |
Interpretation of Income Statement
In the most recent fiscal year, AMD exhibited robust revenue growth, increasing from 22.68B in 2023 to 25.79B in 2024, while CEVA’s revenue saw a slight decline from 97.42M to 107M. AMD’s net income rose significantly to 1.64B, indicating improved profitability, while CEVA reported a continued loss of 8.79M. Margin stability is evident at AMD, where EBITDA margins improved, whereas CEVA’s margins weakened, reflecting ongoing operational challenges. Overall, AMD’s performance reflects strong demand and effective cost management, while CEVA’s results highlight the need for strategic adjustments to improve financial health.
Financial Ratios Comparison
The following table provides a comparative overview of key financial ratios for Advanced Micro Devices, Inc. (AMD) and CEVA, Inc. to help you assess their performance.
| Metric | AMD | CEVA |
|---|---|---|
| ROE | 2.85% | -3.30% |
| ROIC | 2.49% | -8.56% |
| P/E | 123.59 | -44.90 |
| P/B | 3.52 | 2.02 |
| Current Ratio | 2.62 | 7.09 |
| Quick Ratio | 1.83 | 7.09 |
| D/E | 0.04 | 0.02 |
| Debt-to-Assets | 3.20% | 2.12% |
| Interest Coverage | 20.65 | N/A |
| Asset Turnover | 0.37 | 0.34 |
| Fixed Asset Turnover | 10.63 | 8.43 |
| Payout Ratio | 0% | 0% |
| Dividend Yield | 0% | 0% |
Interpretation of Financial Ratios
AMD shows a relatively strong return on equity (ROE) and return on invested capital (ROIC), indicating effective utilization of equity and capital, despite a high P/E ratio suggesting overvaluation. On the other hand, CEVA’s negative ratios highlight operational challenges and a lack of profitability, raising concerns about its financial health. Overall, AMD appears to be in a stronger position than CEVA, which may signal higher risk for investors considering CEVA.
Dividend and Shareholder Returns
Both Advanced Micro Devices, Inc. (AMD) and CEVA, Inc. do not pay dividends, opting instead to reinvest in growth and R&D. AMD’s focus on strategic investments aligns with its high growth trajectory, while CEVA, despite its negative net income, emphasizes innovation. Neither company has dividend payout ratios, but both engage in share buyback programs, which may enhance shareholder value. Their approaches suggest a potential for long-term value creation if growth strategies are effectively executed.
Strategic Positioning
In 2025, Advanced Micro Devices, Inc. (AMD) commands a dominant position in the semiconductor market with a significant market share due to its diverse range of products in computing and graphics. Their advanced processing units and GPUs are critical for both consumer and enterprise applications. In contrast, CEVA, Inc. holds a niche but essential role in wireless connectivity and AI processing technologies, facing competitive pressure from larger players. Technological disruptions, particularly in AI and IoT, are reshaping the landscape, compelling both companies to innovate continuously to maintain their market relevance.
Stock Comparison
In this section, I will analyze the weekly stock price movements of Advanced Micro Devices, Inc. (AMD) and CEVA, Inc. over the past year, highlighting key price dynamics and notable trading behaviors.
Trend Analysis
Advanced Micro Devices, Inc. (AMD) Over the past year, AMD has experienced a significant price change of +56.97%. This bullish trend indicates a strong upward movement in the stock, with notable acceleration. The highest price reached was 256.12, while the lowest was 85.76. The standard deviation of 35.8 suggests moderate volatility in price movements. Recently, from September 14, 2025, to November 30, 2025, the stock saw a price change of +37.18%, continuing its bullish trend with an upward slope of 7.57.
CEVA, Inc. (CEVA) CEVA has recorded a price change of +2.37% over the same time period, classifying it in a bullish trend. However, the acceleration status is marked as deceleration, indicating a slowing momentum. The stock achieved a high of 34.67 and a low of 17.39, with a standard deviation of 4.47, reflecting low volatility. In the recent analysis period from September 14, 2025, to November 30, 2025, CEVA faced a price drop of -8.56%, leading to a negative trend slope of -0.38, suggesting weakening price performance during this timeframe.
Analyst Opinions
Recent analyst recommendations for Advanced Micro Devices, Inc. (AMD) indicate a solid “Buy” rating, with analysts highlighting its strong return on assets (4/5) and favorable discounted cash flow score. Meanwhile, CEVA, Inc. (CEVA) has received a more cautious “Hold” rating, primarily due to its lower return on equity score (1/5) and overall rating of C+. Currently, the consensus for AMD is a buy, while CEVA leans toward a hold.
Stock Grades
As we assess the latest stock ratings for key companies, it’s important to note the consistent evaluations from reputable grading firms.
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 |
CEVA, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Barclays | maintain | Overweight | 2025-11-12 |
| Rosenblatt | maintain | Buy | 2025-11-11 |
| Rosenblatt | maintain | Buy | 2025-08-14 |
| Oppenheimer | maintain | Outperform | 2025-05-09 |
| Rosenblatt | maintain | Buy | 2025-05-08 |
| Barclays | maintain | Overweight | 2025-05-08 |
| Rosenblatt | maintain | Buy | 2025-04-23 |
| Rosenblatt | maintain | Buy | 2025-02-14 |
| Barclays | maintain | Overweight | 2025-02-14 |
| Rosenblatt | maintain | Buy | 2025-02-11 |
In summary, both Advanced Micro Devices and CEVA have maintained solid grades across multiple reputable firms, indicating a stable outlook and investor confidence in these companies. The consistent “Buy” and “Outperform” ratings suggest positive sentiment and potential growth opportunities for investors looking to add these stocks to their portfolios.
Target Prices
The consensus target price for Advanced Micro Devices, Inc. (AMD) indicates a favorable outlook among analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Advanced Micro Devices, Inc. | 380 | 200 | 295.24 |
Analysts expect AMD’s stock price to reach an average of 295.24, suggesting significant upside potential compared to the current price of 217.52. Unfortunately, no verified target price data is available for CEVA, Inc. (CEVA), reflecting a cautious sentiment in the market for this company.
Strengths and Weaknesses
Below is a comparative analysis of the strengths and weaknesses between Advanced Micro Devices, Inc. (AMD) and CEVA, Inc. (CEVA).
| Criterion | AMD | CEVA |
|---|---|---|
| Diversification | Strong presence in computing and graphics | Focused on wireless and smart sensing technologies |
| Profitability | Net profit margin of 6.36% (2024) | Negative profit margins (-8.22% in 2024) |
| Innovation | High R&D investment and product innovation | Focused on AI and IoT technologies, but less diverse |
| Global presence | Operates worldwide with a significant market share | Growing presence, but smaller global footprint |
| Market Share | Leading position in semiconductors | Niche player in DSP and IoT markets |
| Debt level | Low debt-to-equity ratio (0.04) | Very low debt levels (0.02) |
The key takeaways indicate that while AMD showcases strong profitability and a diverse product range, CEVA has a more specialized focus with lower debt levels. However, CEVA struggles with profitability, which may pose a risk for investors.
Risk Analysis
The following table outlines the key risks associated with Advanced Micro Devices, Inc. (AMD) and CEVA, Inc. (CEVA).
| Metric | AMD | CEVA |
|---|---|---|
| Market Risk | High | Medium |
| Regulatory Risk | Medium | High |
| Operational Risk | Medium | High |
| Environmental Risk | Low | Medium |
| Geopolitical Risk | High | Medium |
Both AMD and CEVA face significant market and regulatory risks, with AMD particularly sensitive to geopolitical tensions affecting the tech industry. CEVA’s operational challenges, exacerbated by its recent financial performance, make it a riskier investment at this time.
Which one to choose?
When analyzing Advanced Micro Devices, Inc. (AMD) and CEVA, Inc. (CEVA), AMD appears to be the more favorable option for investors. AMD shows stronger fundamentals, including a higher gross profit margin of 49.35% compared to CEVA’s 88.06%, although CEVA has a historical advantage in gross margins. AMD’s price-to-earnings ratio stands at 123.59, indicating higher valuation pressures, while CEVA’s negative metrics reflect ongoing profitability challenges. Analyst ratings favor AMD with a grade of B versus CEVA’s C+, and AMD’s stock trend is bullish, with a 56.97% price increase over the last year.
For growth-focused investors, I recommend AMD, while those seeking stability might consider CEVA, acknowledging the risks of market dependence and competition impacting both companies.
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 CEVA, Inc. to enhance your investment decisions:
