Qualcomm Technologies Inc. (QCOM) and Advanced Micro Devices, Inc. (AMD) are key competitors in the semiconductor industry, focusing on mobile, PC, and data center markets, particularly in artificial intelligence (AI). Qualcomm’s Snapdragon portfolio features high-performance chipsets aimed at various sectors, while AMD has expanded through its acquisition of Xilinx and the development of advanced architectures like the “Zen” CPU and “Vega” GPU.
Financial Projections: The Zacks Consensus Estimate anticipates an 11.8% year-over-year increase in Qualcomm’s 2025 sales, and a 14.6% growth in EPS. In comparison, AMD is projected for a 23.1% growth in sales and an 18.4% rise in EPS. Over the past year, Qualcomm’s stock has declined by 27.7%, while AMD has dropped 21.5%. AMD currently has a better growth outlook but comes with a higher valuation, trading at a price/earnings ratio of 26.72 compared to Qualcomm’s 12.95.
Both companies carry a Zacks Rank of #3 (Hold). While Qualcomm is facing competitive challenges particularly in the AI PC market from companies like Intel and MediaTek, AMD is experiencing growth in enterprise adoption and cloud deployments. With expectations of improving sales and profits in 2025, AMD appears to be a relatively better investment option currently.
