Better Semiconductor Stock: AMD vs. Broadcom

Motley Fool12-20 17:00

AMD and Broadcom both achieved triple-digit, year-over-year sales growth in key parts of their businesses. Demand for AMD's data center products drove fiscal third-quarter sales in this segment...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2492497281?lang=en_US&edition=fundamental","thumbnail":"https://g.foolcdn.com/image/?url=https%3A%2F%2Fg.foolcdn.com%2Feditorial%2Fimages%2F801249%2Fai-chip-on-black-circuit-board-gettyimages-1402452876-1200x675-c2b5ff2.png&op=resize&w=165&h=104","is_english":true,"pubTime":"2024-12-20 17:00","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2492497281","market":"us","top_or_hot":-1,"title":"Better Semiconductor Stock: AMD vs. Broadcom","media":"Motley Fool","content":"<div>\n<p>AMD and Broadcom both achieved triple-digit, year-over-year sales growth in key parts of their businesses.\n\n\n\n\n\n\n\nDemand for AMD's data center products drove fiscal third-quarter sales in this segment...</p>\n\n<a href=\"https://www.fool.com/investing/2024/12/20/better-semiconductor-stock-amd-vs-broadcom/\">Source Link</a>\n\n</div>\n","source":"fool_stock","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Better Semiconductor Stock: AMD vs. Broadcom</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBetter Semiconductor Stock: AMD vs. Broadcom\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-20 17:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2024/12/20/better-semiconductor-stock-amd-vs-broadcom/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>AMD and Broadcom both achieved triple-digit, year-over-year sales growth in key parts of their businesses.\n\n\n\n\n\n\n\nDemand for AMD's data center products drove fiscal third-quarter sales in this segment...</p>\n\n<a href=\"https://www.fool.com/investing/2024/12/20/better-semiconductor-stock-amd-vs-broadcom/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0256863811.USD","symbol_name":"ALLIANZ US EQUITY \"A\" INC","start_time":0,"source_url":"https://www.fool.com/investing/2024/12/20/better-semiconductor-stock-amd-vs-broadcom/","article_id":"2492497281","we_media_id":null,"thumbnails":["https://g.foolcdn.com/image/?url=https%3A%2F%2Fg.foolcdn.com%2Feditorial%2Fimages%2F801249%2Fai-chip-on-black-circuit-board-gettyimages-1402452876-1200x675-c2b5ff2.png&op=resize&w=165&h=104"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2492497281","pubTimestamp":1734685200,"columns":[],"sourceInfo":{"source_id":"fool_stock","name":"Motley Fool"},"weMediaInfo":null,"summary":"AMD and Broadcom both achieved triple-digit, year-over-year sales growth in key parts of their businesses.Demand for AMD's data center products drove fiscal third-quarter sales in this segment to 122% year-over-year growth.Broadcom's acquisition of VMware enabled its infrastructure business to grow sales by 196% year over year in its fiscal fourth quarter.Semiconductor stocks are a great area to invest in. The industry had a strong 2024 with global sales up 19% year over year and more growth expected in 2025. The World Semiconductor Trade Statistics forecasts the industry to reach nearly $700 billion in 2025, up from $627 billion in 2024.Thanks to factors such as the expanding artificial intelligence market, the industry could enjoy years of additional growth. To capitalize on this, two prominent semiconductor stocks to consider investing in are Advanced Micro Devices  and Broadcom .Both are seeing strong sales thanks to customer demand for their AI-related products. But if you had to ","collect":0,"end_time":0,"defaultTopTitle":"fool.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC","LU1303367103.USD":"摩根大通多经理另类基金 A (acc)","LU0476273544.USD":"CT (LUX) I GLOBAL TECHNOLOGY \"BU\" (USD) ACC","IE00BLSP4452.SGD":"Legg Mason ClearBridge - Tactical Dividend Income A Mdis SGD-H Plus","LU0823434740.USD":"BNP PARIBAS US GROWTH \"C\" (USD) INC","AVGO":"博通","BK4515":"5G概念","LU0234570918.USD":"高盛全球核心股票组合Acc Close","AVGOP":"BROADCOM INC PFD SER A 22","GFS":"GLOBALFOUNDRIES Inc.","BK4534":"瑞士信贷持仓","LU0082616367.USD":"摩根大通美国科技A（dist）","LU2106854487.HKD":"ALLIANZ THEMATICA \"AMG\" (HKD) INC","LU0889565833.HKD":"FRANKLIN TECHNOLOGY \"A\" (HKD) ACC","LU0056508442.USD":"贝莱德世界科技基金A2","LU0390134368.USD":"FRANKLIN GLOBAL GROWTH \"A\" (USD) ACC","LU1951200564.SGD":"Natixis Thematics AI & Robotics Fund R/A SGD","IE00BMPRXN33.USD":"NEUBERGER BERMAN 5G CONNECTIVITY \"A\" (USD) ACC","LU1868836914.USD":"CT (LUX) I AMERICAN \"3\" (USD) ACC","IE00BJLML261.HKD":"HSBC GLOBAL EQUITY INDEX \"HCH\" (HKD) ACC","LU1914381329.SGD":"Allianz Best Styles Global Equity Cl ET Acc H2-SGD","LU2592432038.USD":"WELLINGTON MULTI-ASSET HIGH INCOME \"A\" (USD) ACC","LU2272731600.USD":"Allianz Global Intelligent Cities AM Dis USD","LU1037948541.HKD":"AB LOW VOLATILITY EQUITY PORTFOLIO \"A\" (HKD) ACC","LU1670711123.USD":"M&G (LUX) GLOBAL DIVIDEND \"A\" (USD) INC","IE00B19Z9P08.USD":"LEGG MASON CLEARBRIDGE US AGGRESSIVE GROWTH \"A\" (USD) INC","LU0234572021.USD":"高盛美国核心股票组合Acc","AMD":"美国超微公司","LU0820561909.HKD":"ALLIANZ INCOME AND GROWTH \"AM\" (HKD) INC","LU0320765646.SGD":"FTIF - Franklin Income A MDIS SGD-H1","LU2237957902.USD":"NIKKO AM GLOBAL EQUITY \"F\" (USD) ACC","LU2264538146.SGD":"Fullerton Lux Funds - Global Absolute Alpha A Acc SGD","LU1868836591.USD":"CT (LUX) I AMERICAN \"1U\"(USD) ACC","SG9999015945.SGD":"LionGlobal Disruptive Innovation Fund A SGD","IE00BZ1G4Q59.USD":"LEGG MASON CLEARBRIDGE US EQUITY SUSTAINABILITY LEADER \"A\"(USD) INC (A)","LU2237957811.SGD":"NIKKO AM GLOBAL EQUITY \"F\" (SGD) ACC","LU1934455863.HKD":"AB SICAV I LOW VOLATILITY TOTAL RETURN EQUITY PORT \"A\" (HKD) ACC","LU0795875086.SGD":"JPMorgan Investment Funds - Global Income A (div) SGD","SG9999015986.USD":"LIONGLOBAL DISRUPTIVE INNOVATION \"I\" (USD) ACC","LU1670711040.USD":"M&G (LUX) GLOBAL DIVIDEND \"A\" (USD) ACC","LU1814569148.SGD":"WELLINGTON GLOBAL QUALITY GROWTH \"D\" (SGDHDG) ACC","LU0979878070.USD":"FULLERTON LUX FUNDS - ASIA ABSOLUTE ALPHA \"A\" (USD) ACC","LU2505996681.GBP":"WELLINGTON MULTI-ASSET HIGH INCOME \"AM4H\" (GBPHDG) INC","LU1720051017.SGD":"Allianz Global Artificial Intelligence AT Acc H2-SGD","LU0861579265.USD":"联博低波幅策略股票基金A","LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","LU0787776722.HKD":"AB SELECT US EQUITY PORTFOLIO \"A\" (HKD) ACC","LU1244550577.SGD":"FTIF - Franklin Global Multi-Asset Income A (Mdis) SGD-H1","LU0345769631.USD":"NINETY ONE GSF GLOBAL EQUITY \"A\" (USD) INC","LU2602419157.SGD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"AC\" (SGD) ACC"},"translate_title":"更好的半导体股票：AMD与博通","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AVGO":1,"AVGOP":1,"AMD":1,"GFS":1},"content_text":"AMD and Broadcom both achieved triple-digit, year-over-year sales growth in key parts of their businesses.\n\n\n\n\n\n\n\nDemand for AMD's data center products drove fiscal third-quarter sales in this segment to 122% year-over-year growth.\n\n\n\n\n\n\n\nBroadcom's acquisition of VMware enabled its infrastructure business to grow sales by 196% year over year in its fiscal fourth quarter.\n\nSemiconductor stocks are a great area to invest in. The industry had a strong 2024 with global sales up 19% year over year and more growth expected in 2025. The World Semiconductor Trade Statistics forecasts the industry to reach nearly $700 billion in 2025, up from $627 billion in 2024.Thanks to factors such as the expanding artificial intelligence market, the industry could enjoy years of additional growth. To capitalize on this, two prominent semiconductor stocks to consider investing in are Advanced Micro Devices (AMD -2.08%) and Broadcom (AVGO -2.37%).Both are seeing strong sales thanks to customer demand for their AI-related products. But if you had to choose only one to invest in, which would it be? Here's a look at AMD and Broadcom to help you arrive at an answer.AMD's AI approachAMD specializes in semiconductor products for accelerated computing. Accelerated computing uses dedicated components to speed up the processing of data-intensive tasks, such as those performed by AI.AMD sees a growing demand for accelerated computing in the years ahead to support not only AI but also an expanding number of data-intensive applications, including 5G wireless networks. Today's computer hardware will require upgrades to support accelerated computing, providing a substantial market for AMD's products.Artificial intelligence is among the biggest technologies requiring accelerated computing. That's why AI demand supercharged AMD's sales in its fiscal third quarter, which ended Sept. 28, to a record $6.8 billion. This represented an 18% year-over-year increase.The company's semiconductor products are coveted since they boost the speed and efficiency of AI systems housed in data centers. As a result, AMD's data center sales reached record revenue of $3.5 billion, a 122% year-over-year increase.AMD is expanding its successful data center business through acquisitions. For example, it expects to close a deal to acquire ZT Systems in the first half of 2025. ZT Systems helps customers implement AI infrastructure.Thanks to demand for accelerated computing, AMD anticipates its Q4 revenue rising higher than Q3's record $6.8 billion to reach $7.5 billion. That's a double-digit increase over the prior year's $6.2 billion.Broadcom's drivers of successCEO Hock Tan called 2024 \"a transformative year for Broadcom.\" This was driven by two key factors: AI and its acquisition of VMware.The company acquired VMware in November 2023. VMware provides virtualization software, which enables IT organizations to run multiple operating systems on a single server. Broadcom is positioning this ability as a means for businesses to establish their own private cloud computing environment rather than use a public one owned by a conglomerate such as Microsoft.The approach is attracting customers. Broadcom's infrastructure business segment, of which VMware is a part, increased revenue by 196% year over year to $5.8 billion in the firm's fiscal fourth quarter, which ended Nov. 3.As for AI, the semiconductor giant's AI-related revenue rose 220% in fiscal 2024 to $12.2 billion compared to 2023's $3.8 billion. This AI demand helped the company's full-year sales reach record revenue of $51.6 billion, a 44% increase over fiscal 2023.The company's sales success enabled it to generate a strong free cash flow of $5.5 billion in Q4, up from $4.7 billion in the prior year. As a result, Broadcom raised its dividend 11% to $0.59 per share.Choosing between AMD and Broadcom stocksBoth AMD and Broadcom are excellent semiconductor companies, as evidenced by their strong sales growth. Owning stock in both is ideal, so picking just one is a tough choice. One factor to consider is valuation using the price-to-earnings (P/E) ratio.Data by YCharts.The P/E ratio tells you how much investors are willing to pay for a dollar's worth of earnings. Broadcom and AMD's P/E multiples are going in opposite directions as 2024 draws to a close.After Broadcom announced its impressive fiscal Q4 results, its share price skyrocketed, reaching a 52-week high of $251.88 on Dec. 16. This caused its P/E ratio to surge as well, and as a result, AMD shares look like the better value right now.On top of that, AMD has another potential advantage over Broadcom. Broadcom is particularly vulnerable to impending U.S. government tariffs and export restrictions on semiconductor products to China. Approximately one-third of its sales are to Chinese customers. In contrast, AMD's exposure to China is about half that of Broadcom at 15% of sales.While both possess thriving AI businesses, AMD's better valuation and lower exposure to risk in China give it the edge over Broadcom as the superior semiconductor stock to buy right now. That said, Broadcom is worth putting on your watch list to pick up shares when the stock price drops.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2492497281"}