Home > Comparison > Technology > AMD vs CRUS
The strategic rivalry between Advanced Micro Devices, Inc. (AMD) and Cirrus Logic, Inc. shapes the semiconductor industry’s evolution. AMD operates as a capital-intensive leader with diversified processor and GPU solutions, while Cirrus Logic focuses on high-precision, low-power mixed-signal audio and industrial ICs. This analysis contrasts their operational models and growth trajectories to identify which offers the superior risk-adjusted return for a well-diversified technology portfolio.
Table of contents
Companies Overview
Advanced Micro Devices and Cirrus Logic both hold significant roles in the semiconductor industry, shaping technology trends globally.
Advanced Micro Devices, Inc.: Semiconductor Powerhouse
Advanced Micro Devices leads as a semiconductor giant specializing in high-performance computing and graphics solutions. Its revenue stems from diverse products, including Ryzen processors, Radeon GPUs, and EPYC server chips. In 2026, AMD’s strategic focus centers on expanding data center and gaming markets by leveraging cutting-edge chip design and integration technologies.
Cirrus Logic, Inc.: Precision Audio Innovator
Cirrus Logic operates as a fabless semiconductor specialist in mixed-signal processing, focusing on audio and voice enhancement ICs. The company generates revenue through integrated circuits for consumer electronics such as smartphones and AR/VR devices. Its 2026 strategy emphasizes advancing SoundClear technology and expanding applications in industrial energy and automotive sectors.
Strategic Collision: Similarities & Divergences
Both companies excel in semiconductor innovation but diverge sharply in scope; AMD pursues broad computing and graphics dominance, while Cirrus Logic concentrates on niche, high-precision audio and mixed-signal solutions. Their competition unfolds primarily in specialized chip design rather than direct market overlap. This contrast creates distinct investment profiles: AMD appeals through scale and product breadth; Cirrus Logic through focused innovation and specialized markets.
Income Statement Comparison
The following data dissects the core profitability and scalability of both corporate engines to reveal who dominates the bottom line:
| Metric | Advanced Micro Devices, Inc. (AMD) | Cirrus Logic, Inc. (CRUS) |
|---|---|---|
| Revenue | 34.6B | 1.9B |
| Cost of Revenue | 17.5B | 900M |
| Operating Expenses | 13.5B | 586M |
| Gross Profit | 17.2B | 996M |
| EBITDA | 3.7B | 497M |
| EBIT | 3.7B | 445M |
| Interest Expense | 131M | 1M |
| Net Income | 4.3B | 332M |
| EPS | 2.67 | 6.24 |
| Fiscal Year | 2025 | 2025 |
Income Statement Analysis: The Bottom-Line Duel
The following income statement comparison reveals the true efficiency and momentum driving each company’s financial engine in 2025.
Advanced Micro Devices, Inc. (AMD) Analysis
AMD’s revenue surged 34% in 2025 to $34.6B, with net income nearly tripling to $4.3B. Gross margin remains strong at 49.5%, while net margin expanded to 12.5%, signaling enhanced profitability. Operating income jumped 78%, reflecting improved cost control and robust top-line growth momentum.
Cirrus Logic, Inc. (CRUS) Analysis
CRUS posted modest 6% revenue growth to $1.9B in 2025, alongside a 21.9% rise in EBIT. Gross margin improved to 52.5%, and net margin reached a healthy 17.5%. Profitability gains come from disciplined operating expenses and steady expansion, underscoring efficient margin management amid slower top-line growth.
Margin Expansion vs. Revenue Acceleration
AMD dominates with rapid revenue growth and a strong net income leap, while CRUS leads in margin efficiency and steady profit expansion. AMD’s scale and momentum favor growth-focused investors, whereas CRUS offers a more resilient margin profile ideal for those prioritizing profitability consistency.
Financial Ratios Comparison
These vital ratios act as a diagnostic tool to expose the underlying fiscal health, valuation premiums, and capital efficiency of the companies compared below:
| Ratios | Advanced Micro Devices, Inc. (AMD) | Cirrus Logic, Inc. (CRUS) |
|---|---|---|
| ROE | 2.85% (2024) | 17.01% (2025) |
| ROIC | 2.49% (2024) | 14.20% (2025) |
| P/E | 124 (2024) | 16 (2025) |
| P/B | 3.52 (2024) | 2.71 (2025) |
| Current Ratio | 2.62 (2024) | 6.35 (2025) |
| Quick Ratio | 1.83 (2024) | 4.82 (2025) |
| D/E | 0.038 (2024) | 0.074 (2025) |
| Debt-to-Assets | 3.20% (2024) | 6.18% (2025) |
| Interest Coverage | 20.7 (2024) | 457.0 (2025) |
| Asset Turnover | 0.37 (2024) | 0.81 (2025) |
| Fixed Asset Turnover | 10.63 (2024) | 6.62 (2025) |
| Payout ratio | 0% (2024) | 0% (2025) |
| Dividend yield | 0% (2024) | 0% (2025) |
| Fiscal Year | 2024 | 2025 |
Efficiency & Valuation Duel: The Vital Signs
Financial ratios act as a company’s DNA, exposing hidden risks and revealing operational excellence crucial for investment decisions.
Advanced Micro Devices, Inc.
AMD’s net margin at 12.51% shows healthy profitability despite a zero ROE and ROIC, signaling operational challenges. The stock trades at a stretched P/E of 80.54, suggesting premium valuation. AMD lacks dividends, focusing on heavy R&D reinvestment (25% of revenue) to fuel growth, reflecting a long-term innovation strategy.
Cirrus Logic, Inc.
CRUS delivers strong profitability metrics: 17.48% net margin, 17.01% ROE, and 14.2% ROIC, indicating efficient capital use. Its valuation is reasonable with a P/E near 16, offering a balanced price. The company does not pay dividends but supports shareholder value through solid free cash flow and moderate debt, emphasizing steady operational performance.
Premium Valuation vs. Operational Safety
AMD’s stretched valuation contrasts with CRUS’s efficient profitability and balanced valuation. CRUS provides a healthier risk-reward profile with stronger returns on equity and invested capital. Investors seeking stability and operational safety may prefer CRUS’s solid fundamentals, while growth-focused profiles might tolerate AMD’s premium for innovation potential.
Which one offers the Superior Shareholder Reward?
I observe that neither AMD nor Cirrus Logic pays a dividend, focusing instead on reinvestment and buybacks. AMD’s free cash flow per share in 2025 is $3.40, but it lacks dividend payouts. Cirrus Logic, with a higher net margin (17.5% vs. AMD’s 12.5%) and robust free cash flow per share of $7.82, also pays no dividend. Both deploy capital heavily in growth, but Cirrus Logic’s superior operating cash flow ratio (2.28 vs. AMD’s 0.19) and consistent buyback intensity imply a more sustainable shareholder reward. AMD’s sky-high P/E (~80x) signals rich valuation, while Cirrus trades more reasonably (~16x). I conclude Cirrus Logic offers a more attractive total return profile in 2026 due to stronger cash generation and sustainable capital allocation.
Comparative Score Analysis: The Strategic Profile
The radar chart reveals the fundamental DNA and trade-offs of Advanced Micro Devices, Inc. (AMD) and Cirrus Logic, Inc. (CRUS), highlighting their financial strengths and valuation perspectives:
CRUS leads with a more balanced and favorable profile across DCF (4 vs. 3), ROE (4 vs. 3), and ROA (5 vs. 3), signaling superior operational efficiency. Both share moderate debt levels (3 each), but AMD suffers from a very unfavorable P/E score (1 vs. 3), indicating potential overvaluation risks. CRUS’s valuation metrics also edge AMD slightly, though both have similar P/B scores. I see CRUS as the firm leveraging broad financial strength, while AMD relies more narrowly on moderate operational returns despite valuation weaknesses.
Bankruptcy Risk: Solvency Showdown
The Altman Z-Scores of 18.0 for AMD and 12.4 for CRUS place both well within the safe zone, signaling strong long-term solvency and low bankruptcy risk in this cycle:
Financial Health: Quality of Operations
Both AMD and CRUS post robust Piotroski F-Scores of 7, reflecting strong financial health and operational quality with no immediate red flags in internal metrics:
How are the two companies positioned?
This section dissects AMD and CRUS’s operational DNA by comparing revenue distribution and internal dynamics. Our goal is to confront their economic moats and identify which model delivers the most resilient, sustainable advantage today.
Revenue Segmentation: The Strategic Mix
This visual comparison dissects how Advanced Micro Devices, Inc. and Cirrus Logic, Inc. diversify their income streams and where their primary sector bets lie:
AMD’s revenue pivots on a broad mix: Data Center leads with $12.6B, followed by Client at $7.1B, Embedded $3.6B, and Gaming $2.6B. Cirrus Logic leans heavily on Portable Audio Products at $1.1B, with High-Performance Mixed Signal Products trailing at $705M. AMD’s diversified portfolio reduces concentration risk and leverages ecosystem lock-in, while Cirrus faces greater risk from a narrower sector focus.
Strengths and Weaknesses Comparison
This table compares the strengths and weaknesses of AMD and CRUS based on diversification, profitability, financials, innovation, global presence, and market share:
AMD Strengths
- Diversified revenue streams across Client, Data Center, Embedded, and Gaming segments
- Strong global presence in US, China, Singapore, Taiwan
- Favorable net margin at 12.51%
- Low debt-to-assets ratio and high interest coverage
CRUS Strengths
- Favorable profitability metrics: net margin 17.48%, ROE 17.01%, ROIC 14.2%
- Solid financial health with low debt (D/E 0.07) and high interest coverage
- High fixed asset turnover indicating efficient use of assets
- Global reach with strong presence in China and Hong Kong
AMD Weaknesses
- Unfavorable ROE and ROIC both at 0%, below WACC of 12.94%
- High P/E ratio at 80.54 signals overvaluation risk
- Weak liquidity ratios (current and quick ratios unavailable or unfavorable)
- Low asset turnover metrics indicate operational inefficiency
CRUS Weaknesses
- Current ratio of 6.35 flagged as unfavorable, potential liquidity management concern
- P/E and P/B ratios are neutral, limiting valuation appeal
- Dividend yield at 0% may deter income-focused investors
- Market concentration in Portable Audio Products limits diversification
Both companies show clear strengths in profitability and financial structure, but AMD’s operational inefficiencies and valuation metrics raise concerns. CRUS exhibits stronger returns on capital and asset efficiency, though liquidity and product concentration remain risks. These factors shape their strategic priorities and risk profiles going forward.
The Moat Duel: Analyzing Competitive Defensibility
A structural moat is the only reliable shield protecting long-term profits from relentless competitive erosion. Let’s dissect the moats of two semiconductor players:
Advanced Micro Devices, Inc. (AMD): Innovation-Driven Cost Advantage
AMD leverages a cost advantage through cutting-edge chip design and product diversification. However, a declining ROIC signals weakening capital efficiency, threatening margin stability despite strong recent revenue growth. New data center and gaming GPUs could deepen its moat if execution improves in 2026.
Cirrus Logic, Inc. (CRUS): Niche Specialization with Steady Value Creation
Cirrus Logic’s moat stems from its specialized mixed-signal processing and patented audio technologies. Unlike AMD, CRUS sustains a very favorable ROIC above WACC with growing profitability. Its focused product portfolio in audio and haptics offers steady expansion opportunities in mobile and emerging AR/VR markets.
The Moat Battle: Cost Leadership vs. Specialized Innovation
Cirrus Logic holds a deeper and more durable moat, evidenced by consistent ROIC growth and value creation. AMD’s broader market reach faces risk from declining capital returns. CRUS is better positioned to defend its niche market share amid intensifying semiconductor competition.
Which stock offers better returns?
Over the past 12 months, AMD and CRUS both show strong upward price movements, with CRUS exhibiting higher overall gains amid steady trading volume trends.
Trend Comparison
Advanced Micro Devices, Inc. (AMD) posts a 26.72% price increase over the last year, marking an accelerating bullish trend with volatility at 41.61 and a price range from 85.76 to 259.68.
Cirrus Logic, Inc. (CRUS) delivers a 40.5% price gain over the same period, also accelerating bullish with lower volatility at 14.36 and prices spanning 82.02 to 145.69.
CRUS outperforms AMD in market returns, showing a stronger overall price rise despite lower volatility and a less dominant buyer volume trend.
Target Prices
Analysts provide a bullish consensus for Advanced Micro Devices and Cirrus Logic with solid upside potential.
| Company | Target Low | Target High | Consensus |
|---|---|---|---|
| Advanced Micro Devices, Inc. | 225 | 380 | 291.56 |
| Cirrus Logic, Inc. | 100 | 155 | 138.75 |
The consensus target prices imply 20%–30% upside from current levels, reflecting strong confidence in both semiconductors’ growth despite recent market volatility.
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How do institutions grade them?
Advanced Micro Devices, Inc. Grades
The following table shows recent grades assigned to Advanced Micro Devices, Inc. by major grading firms.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Wells Fargo | Maintain | Overweight | 2026-01-30 |
| Piper Sandler | Maintain | Overweight | 2026-01-26 |
| UBS | Maintain | Buy | 2026-01-26 |
| Bernstein | Maintain | Market Perform | 2026-01-21 |
| Keybanc | Upgrade | Overweight | 2026-01-13 |
| Truist Securities | Maintain | Buy | 2025-12-19 |
| Cantor Fitzgerald | Maintain | Overweight | 2025-12-16 |
| Morgan Stanley | Maintain | Equal Weight | 2025-11-12 |
| Wedbush | Maintain | Outperform | 2025-11-12 |
| Rosenblatt | Maintain | Buy | 2025-11-12 |
Cirrus Logic, Inc. Grades
Below is the summary of recent grades for Cirrus Logic, Inc. from recognized grading firms.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Benchmark | Maintain | Buy | 2025-11-05 |
| Keybanc | Maintain | Overweight | 2025-11-05 |
| Stifel | Maintain | Buy | 2025-11-05 |
| Barclays | Maintain | Equal Weight | 2025-11-05 |
| Susquehanna | Maintain | Positive | 2025-10-22 |
| Stifel | Maintain | Buy | 2025-10-17 |
| Stifel | Maintain | Buy | 2025-09-12 |
| Barclays | Maintain | Equal Weight | 2025-05-07 |
| Barclays | Maintain | Equal Weight | 2025-04-22 |
| Stifel | Maintain | Buy | 2025-04-17 |
Which company has the best grades?
Advanced Micro Devices, Inc. generally receives higher and more frequent Buy and Overweight ratings than Cirrus Logic, Inc. This could indicate stronger institutional confidence, potentially influencing investor sentiment positively.
Risks specific to each company
The following categories identify the critical pressure points and systemic threats facing both firms in the 2026 market environment:
1. Market & Competition
Advanced Micro Devices, Inc.
- Faces intense rivalry from other semiconductor giants, pressuring margins and innovation pace.
Cirrus Logic, Inc.
- Operates in niche mixed-signal chips but competes with larger firms expanding into audio solutions.
2. Capital Structure & Debt
Advanced Micro Devices, Inc.
- Shows strong interest coverage and low debt levels, signaling manageable financial risk.
Cirrus Logic, Inc.
- Maintains low debt-to-equity ratio and excellent interest coverage, reflecting conservative leverage.
3. Stock Volatility
Advanced Micro Devices, Inc.
- Exhibits high beta near 1.95, indicating significant price swings and market sensitivity.
Cirrus Logic, Inc.
- Displays moderate beta of 1.14, suggesting lower price volatility relative to AMD.
4. Regulatory & Legal
Advanced Micro Devices, Inc.
- Subject to global trade tensions and export regulations impacting semiconductor supply chains.
Cirrus Logic, Inc.
- Faces regulatory scrutiny in supply agreements and technology licensing but less exposed globally.
5. Supply Chain & Operations
Advanced Micro Devices, Inc.
- Vulnerable to semiconductor shortages and dependency on third-party foundries.
Cirrus Logic, Inc.
- Relies on specialized manufacturing partners, but smaller scale reduces systemic supply chain risk.
6. ESG & Climate Transition
Advanced Micro Devices, Inc.
- Increasing pressure to improve energy efficiency and reduce carbon footprint in chip production.
Cirrus Logic, Inc.
- Faces expectations to enhance sustainability practices but benefits from lower operational scale.
7. Geopolitical Exposure
Advanced Micro Devices, Inc.
- Heavily exposed to US-China tech tensions and potential export restrictions.
Cirrus Logic, Inc.
- Less exposed geopolitically due to focused product lines and smaller international footprint.
Which company shows a better risk-adjusted profile?
Cirrus Logic’s strongest risk lies in its high current ratio, which may indicate inefficient asset use. AMD’s major risk is its elevated stock volatility and valuation multiples, raising concerns over market corrections. Cirrus Logic’s more balanced financial ratios and moderate beta suggest a better risk-adjusted profile. Notably, AMD’s beta near 1.95 and a price-to-earnings ratio above 80 highlight significant market risk that investors must weigh carefully.
Final Verdict: Which stock to choose?
Advanced Micro Devices (AMD) shines as a high-velocity growth engine with its unmatched innovation in semiconductor technology. Its superpower lies in rapid revenue and earnings expansion, fueled by aggressive R&D. The main point of vigilance is its declining capital efficiency, which could pressure long-term value creation. AMD suits aggressive growth portfolios willing to absorb volatility for outsized returns.
Cirrus Logic (CRUS) boasts a durable competitive moat through its specialized audio and voice ICs, underpinning stable cash flows and robust profitability. Its strategic advantage is enhanced by consistent value creation and solid balance sheet metrics, offering better safety than AMD. CRUS fits well in GARP portfolios seeking steady growth combined with financial resilience.
If you prioritize high-growth exposure and market share expansion, AMD is the compelling choice due to its innovation-driven momentum. However, if you seek durable profitability with superior capital efficiency and less risk, CRUS offers better stability and a more attractive risk-reward profile. Both present distinct analytical scenarios depending on your investment strategy.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Advanced Micro Devices, Inc. and Cirrus Logic, Inc. to enhance your investment decisions:
