AMD vs. Texas Instruments: Which Semiconductor Stock Is a Better Buy in 2026?

Industry
โดย The Motley Fool·Read original
Summary · why it matters

Advanced Micro Devices and Texas Instruments offer contrasting semiconductor investments, with AMD focusing on high-growth AI and data center processors while Texas Instruments provides a diversified analog chip portfolio. In fiscal 2025, AMD revenue surged 34.3% to nearly $34.6 billion with net income of approximately $4.3 billion, while Texas Instruments revenue rose 13% to roughly $17.7 billion with net income of about $5.0 billion. AMD trades at a forward P/E of 69.5x and P/S ratio of 24.4x, compared to Texas Instruments' 38.3x and 15.2x, respectively. The analysis notes AMD's higher growth potential but rich valuation and customer concentration risk, while Texas Instruments offers steadier returns, a dividend, and in-house manufacturing. The author concludes that an ETF investing broadly in tech companies may be preferable to picking either stock.

Impact on stocks 5

Semiconductors▲ · 3 stocks
Texas Instruments Incorporated
TXN
± MixedCapitalrelevance

Article compares Texas Instruments' steady returns and dividend vs. AMD's growth, concluding an ETF may be better; no clear positive or negative.

Artificial Intelligence▲ · 2 stocks
Advanced Micro Devices Inc
AMD
± MixedCapitalrelevance

Article compares AMD's high growth and rich valuation vs. Texas Instruments, concluding an ETF may be better; no clear positive or negative.

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