Benzinga’s Assessment of Advanced Micro Devices and Competitors in the Semiconductor and Semiconductor Equipment Industry

Benzinga – Written by Benzinga Insights by Benzinga Staff.

In a dynamic and extremely competitive business environment, conducting thorough company analysis is crucial for investors and industry enthusiasts. In this article, we will conduct an extensive industry comparison by evaluating Advanced Micro Devices (NASDAQ:AMD) relative to its main competitors in the semiconductor and semiconductor equipment industry. By carefully examining key financial metrics, market position and growth prospects, we strive to offer investors valuable information and shed light on the company’s performance in the industry.

Advanced Micro Devices Overview Advanced Micro Devices designs a variety of digital semiconductors for markets such as PCs, game consoles, data centers, industrial and automotive applications, among others. AMD’s traditional strength has been in the central processing units, CPUs, and graphics processing units, or GPUs, used in desktop computers and data centers. Additionally, the company supplies chips found in leading game consoles such as Sony PlayStation and Microsoft Xbox. In 2022, the company acquired Xilinx, a leader in field gate programming (FPGA), to diversify its business and expand capabilities in key end markets such as data centers and automotive.

Business
P/E
P/B
P/S
ROE
EBITDA (in billions)
Gross profit (in billions)
Revenue increase

Advanced Micro Devices Inc	248.78	4.94	12.29	0.22%	$0.9	$2.56	-11.27%
NVIDIA company	66.65	57/01	35.61	32.31%	$17.75	$20.41	17.83%
Taiwan Semiconductor Manufacturing Co. Ltd	30.60	7.33	11/86	6.38%	$428.26	$314.51	16.52%
Broadcom Inc	52.53	9.32	15/88	2.81%	$4.61	$7.38	34.17%
Qualcomm Inc	28.41	9.72	6.60	9.79%	$3.08	$5.28	1.23%
Texas Instruments Inc	31/06	10.69	10.87	6.52%	$1.77	$2.1	-16.4%
Intel company	32/09	1.25	2.39	-0.36%	$1.83	$5.22	-17.41%
ARM Holdings PLC	430.90	24.55	40.37	4.35%	$0.06	$0.89	12.62%
Analog Devices Inc	54.54	3.29	11/16	0.85%	$0.93	$1.18	-33.83%
Microchip Technology Inc	28.40	7.97	7/09	2.25%	$0.47	$0.79	-40.62%
STMicroelectronics NV	10.74	2.21	2.39	3.04%	$1.06	$1.44	-18.41%
Monolithic Power Systems Inc	90.53	17.49	8.30 p.m	4.45%	0.1 USD	$0.25	1.51%
ON semiconductor company	March 15	3.90	4/01	5.7%	$0.71	$0.85	-4.95%
First Solar Inc	29.37	4.34	8.44	5.38%	$0.36	$0.35	15.58%
GLOBALFOUNDRIES Inc	31/07	2.47	3.92	1.19%	$0.54	$0.39	-15.86%
ASE Technology Holding Co Ltd	22.84	2.72	1.37	1.94%	$23.55	$20.87	1.46%
United Microelectronics Corp	13/08	1.89	3.17	2.9%	$24.0	$16.9	0.78%
Skyworks Inc. Solutions	17/21	2.31	3.24	2.91%	$0.31	$0.42	-9.29%
Lattice Semiconductor Corp	49.67	15.61	15.58	2.15%	$0.03	0.1 USD	-23.6%
Universal Display Corp	39.45	5.80	14/14	3.86%	$0.07	$0.13	26.67%
MACOM Technology Solutions Holdings Inc	117.42	7.21	11/84	1.45%	$0.04	0.1 USD	6.98%
Cirrus Logic Inc	23/81	3.46	3.65	2.48%	$0.05	$0.19	-39.93%
Average	57.88	9.55	11/14	4.87%	$24.27	$19.04	-4.05%

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.dividend-frequency { font-size: 12px; color: #6c757d; } Through detailed analysis of Advanced Micro Devices, we can deduce the following trends:

On 248.78the company’s price-to-earnings ratio is well above the industry average by 4.3xwhich suggests a premium pricing compared to industry competitors.
Taking into account the price-to-book ratio of 4.94which is well below the industry average 0.52xshares may be undervalued based on their book value compared to other companies.
Price to sales ratio 12.29which is 1.1x industry average, suggests that the company’s stock may potentially be overvalued relative to its sales performance compared to other companies.
The company has a lower return on equity (ROE) of 0.22%which is 4.65% below the industry average. This indicates potential inefficiency in the use of equity capital to generate profits, which can be attributed to various factors.
The company’s earnings before interest, taxes, depreciation and amortization (EBITDA). 900 million dollars Is 0.04x below the industry average, suggesting potential lower profitability or financial challenges.
The company has a lower gross profit by $2.56 billionWhich indicates 0.13x below the industry average. This potentially means lower revenues after accounting for production costs.
The company records a significant decline in revenue dynamics, amounting to approx -11.27% compared to the industry average -4.05%which indicates a challenging sales environment.

Debt to equity ratio

The debt-to-equity ratio (D/E) measures the extent to which a company financed its operations with debt relative to equity.

Including the debt-to-equity ratio in industry comparisons allows for a concise assessment of a company’s financial health and risk profile, helping you make informed decisions.

When comparing Advanced Micro Devices to its top 4 competitors based on debt to equity ratio, the following observations can be observed:

Advanced Micro Devices has a stronger financial position compared to its top 4 competitors, as evidenced by a lower debt-to-equity ratio of 0.05.
This suggests that the company has a more favorable debt and equity balance, which may be viewed by investors as a positive indicator.

Key Takeaways Advanced Micro Devices’ high PE ratio indicates that investors are willing to pay a premium for earnings compared to its peers in the semiconductor and semiconductor equipment industry. A low PB ratio suggests that the market is valuing the company’s assets at a lower price relative to its share price. Thanks to its high PS ratio, Advanced Micro Devices generates higher earnings per share compared to its industry peers. On the other hand, low ROE, EBITDA, gross profit and revenue growth mean that the company may be less effective at generating profits and growth compared to industry competitors.

This story was generated by Benzinga’s automated content engine and reviewed by an editor.

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