Comparing Tech Giants: AMD vs. Texas Instruments – Which Stock to Invest in for 2026?

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Key Financial Highlights for AMD and Texas Instruments

Advanced Micro Devices (AMD) reported fiscal 2025 revenue of nearly $34.6 billion, showing a 34% year-over-year increase, with a net income of approximately $4.3 billion and a net margin of 12.5%. In contrast, Texas Instruments (TXN) achieved revenue of almost $17.7 billion, up 13% from the previous year, and a net income of $5 billion, resulting in a net margin of roughly 28%.

AMD’s debt-to-equity ratio stands at 0.1, indicating low reliance on debt, while its current ratio is approximately 2.9. Texas Instruments, on the other hand, has a debt-to-equity ratio of 0.9 and a current ratio of about 4.4, highlighting its strong liquidity position. Free cash flow for AMD was around $6.7 billion, contrasted with TXN’s $2.6 billion in free cash flow.

When evaluating stock valuation metrics, AMD has a forward P/E ratio of 62.0 and a P/S ratio of 22.3, significantly higher than Texas Instruments, which has a forward P/E of 31.1 and a P/S of 13.7. This disparity suggests that investors are willing to pay a premium for AMD’s growth potential.

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