AMD vs. APH: Which Tech Supply Chain Stock Is a Better Buy Now?

Advanced Micro Devices AMD and Amphenol APH are major players in the technology supply chain ecosystem. AMD powers the semiconductor side with CPUs and GPUs driving PCs, data centers, and AI workloads, while Amphenol delivers the connectors and interconnect systems that enable these technologies to function across communications, automotive, aerospace, and industrial markets. Both serve different but equally essential roles in driving global tech growth.

Per the Fortune Business Insight report, the global semiconductor market size was valued at $681.05 billion in 2024 and is projected to grow from $755.28 billion in 2025 to $2,062.59 billion by 2032, reflecting a CAGR of 15.4% during the forecast period from 2025 to 2032. The surge is expected to boost AMD’s growth opportunities. 

Per the Fortune Business Insight report, the global connector market size was valued at $ 87.03 billion in 2024. The market is projected to grow from $91.31 billion in 2025 to $147.44 billion by 2032, reflecting a CAGR of 7.1% during the forecast period. The surge is expected to enhance APH’s market presence. 

AMD or APH — Which of these Tech Supply Chain stocks has the greater upside potential? Let’s find out.

The Case for AMD Stock

AMD is benefiting from strong demand across its product portfolio, including record sales of EPYC and Ryzen processors, driven by broad-based demand for high-performance data center, PC, and embedded processors.

Its strong presence in the data center market, driven by the robust adoption of EPYC processors for cloud, enterprise workloads, and emerging AI use cases, has been noteworthy. In the second quarter of 2025, Data Center revenues increased 14.3% year over year to $3.240 billion, accounting for 42.2% of total revenues. 

AMD is strengthening its footprint in the AI market through an expanding portfolio. In June, AMD unveiled its new Instinct MI350 Series GPUs and open rack-scale AI infrastructure, showcasing significant AI performance and energy efficiency advancements alongside major industry partners.

Further expanding its footprint, in the second quarter of 2025, AMD expanded its collaboration with Red Hat to deliver high-performance AI inference using vLLM on AMD Instinct GPUs and enhance enterprise application deployment with Red Hat OpenShift Virtualization on AMD EPYC CPUs across the hybrid cloud.

The Case for APH Stock

Amphenol benefits from a diversified business model. Its strong portfolio of solutions, including high-technology interconnect products, is a key catalyst. Acquisitions are also helping Amphenol expand its position across a broad array of technologies and markets. 

Amphenol’s expanding portfolio has been noteworthy. In June, APH launched its UQD and UQDB liquid cooling connector series, designed to enhance thermal management in high-reliability systems like AI data centers, EV charging infrastructure, and energy storage. Both series meet Open Compute Project standards and feature corrosion-resistant materials, leak-free seals, and tool-free integration for demanding liquid-cooled environments.

APH’s strong portfolio is helping drive order growth, which jumped 36% year over year and 4% sequentially to $5.523 billion, resulting in a book-to-bill ratio of 0.98:1 in the second quarter of 2025. Amphenol’s expanding portfolio of fiber optic, power, antenna, and sensor technologies continues to gain traction across datacom, aerospace, and defense markets.

Price Performance and Valuation of AMD and APH

Year to date, shares of AMD and APH have appreciated 35.5% and 56.6%, respectively. The outperformance in APH can be attributed to its diversified end-market exposure, expanding interconnect portfolio, and strong acquisition execution.

Despite AMD’s expanding portfolio, the company is suffering from stiff competition in the cloud data center and AI chip markets. The challenging macroeconomic environment also remains a headwind.

AMD and APH Stock Performance

Valuation-wise, AMD and APH shares are currently overvalued, as suggested by a Value Score of F.

In terms of forward 12-month Price/Sales, AMD shares are trading at 7.26X, higher than APH’s 5.83X.

AMD and APH Valuation

How Do Earnings Estimates Compare for AMD & APH?

The Zacks Consensus Estimate for AMD’s 2025 earnings is pegged at $3.94 per share, which has increased 2.3% over the past 30 days. This indicates a 19.03% increase year over year.

Advanced Micro Devices, Inc. Price and Consensus

Advanced Micro Devices, Inc. price-consensus-chart | Advanced Micro Devices, Inc. Quote

The Zacks Consensus Estimate for APH’s 2025 earnings is pegged at $3.02 per share, which has increased 12.2% over the past 30 days. This indicates a 59.79% increase year over year.

Amphenol Corporation Price and Consensus

Amphenol Corporation price-consensus-chart | Amphenol Corporation Quote

AMD earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 2.08%. APH earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 16.25%. The average surprise of Amphenol is higher than that of Advanced Micro Devices.

Conclusion

While both AMD and Amphenol present compelling investment opportunities within the technology supply chain, Amphenol appears to have more upside potential. Its diversified portfolio, robust earnings growth, consistent performance, and better valuation metrics give APH an edge.

AMD’s expanding portfolio and rich partner base are expected to improve its top-line growth. However, AMD has been suffering from stiff competition, particularly from NVIDIA. Export controls on certain Instinct GPUs to China posed a regulatory challenge.

Currently, Amphenol sports a Zacks Rank #1 (Strong Buy), making the stock a stronger pick than AMD, which has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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