TLDR:
- Both AMD and Micron have seen significant growth in AI-related product sales, leading to double-digit year-over-year revenue growth.
- AMD’s data center division experienced an 80% sales increase, while Micron raised prices due to strong demand and saw a rise in gross margin.
Many tech stocks have benefited from the emergence of artificial intelligence (AI) into the mainstream, including Advanced Micro Devices (AMD) and Micron Technology. Both companies have seen their stocks soar over the past year. However, when deciding which stock is the better investment, there are key factors to consider.
AMD has experienced a spike in demand for its products, particularly in its data center and client divisions, which saw significant sales growth. However, other parts of AMD’s business, such as its gaming division, have struggled, leading to a mixed performance overall. On the other hand, Micron’s AI-related products have led to strong revenue growth and increased gross margin. The company has experienced high demand for its memory and storage components, driving significant sales increases.
While both companies are benefiting from the AI boom, Micron’s stronger year-over-year sales growth and better valuation metrics make it the better investment choice between the two. With strong demand for its products and expectations of continued growth, Micron presents a compelling opportunity for investors looking to capitalize on the AI market.