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Advanced Micro Devices AMD and Micron Technology MU are major players in the semiconductor industry. AMD is primarily known for producing CPUs, GPUs, and other integrated circuits, while Micron Technology specializes in memory and storage solutions. Both companies are essential in powering AI, data centers, and advanced computing technologies.
The semiconductor industry is expected to continue its growth trajectory in 2025, driven by strong demand for AI and data center technologies. Per Mordor Intelligence report, the Semiconductor Industry is expected to grow from $631.01 billion in 2025 to $958.93 billion by 2030, at a CAGR of 8.73% during the forecast period from 2025 to 2030. AMD and MU are likely to benefit from the significant growth opportunity highlighted by the rapid pace of growth.
AMD or MU — Which of these semiconductor stocks has the greater upside potential? Let’s find out.
AMD is benefiting from its strong presence in the data center market, driven by the widespread adoption of its EPYC processors and AMD Instinct GPU sales. In the first quarter of 2025, Data Center revenues surged 57.2% year over year to $3.674 billion, accounting for 49.4% of total revenues.
The company is strengthening its footprint in the artificial intelligence market through an expanding portfolio. AMD recently introduced its comprehensive, end-to-end AI platform at the 2025 Advancing AI event, introducing the powerful Instinct MI350 Series GPUs with 4x generational AI compute gains.
The strength of 7 nanometer-based processors is expected to enhance the company’s competitive position in the commercial and server markets. AMD is currently leveraging Taiwan Semiconductor Manufacturing Company's 7nm process technology, which enables it to deliver its advanced 7nm chips to market faster. AMD Radeon RX 7900 series chiplet design combines 5 nm and 6 nm process nodes, each optimized for specific chips in the GPU.
Micron Technology is benefiting from rapidly expanding AI-driven memory and storage markets. The positive impact of inventory improvement across multiple end markets is adding to the top-line growth. Robust demand for its high bandwidth memory (HBM) products has been noteworthy.
The company’s HBM chips are experiencing robust traction due to their growing use in high-performance computing, hyperscalers and artificial intelligence data centers. The high demand for these chips has led to Micron’s HBM revenues crossing $1 billion in the second quarter of fiscal 2025, marking a major milestone.
Micron’s expanding portfolio has been noteworthy. In June 2025, Micron announced that it had begun shipping HBM4 36GB 12-high memory samples to key customers, delivering industry-leading power efficiency and performance to support next-gen AI data center platforms.
Year to date, shares of AMD and MU have appreciated 14.6% and 44.6%, respectively. The outperformance in MU can be attributed to rapidly expanding AI-driven memory and storage markets.
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.
Valuation-wise, AMD and MU shares are currently overvalued, as suggested by a Value Score of F and C, respectively.
In terms of forward 12-month Price/Sales, AMD shares are trading at 6.52X, higher than MU’s 2.90X.
The Zacks Consensus Estimate for AMD’s 2025 earnings is pegged at $3.92 per share, which has declined 1.2% over the past 30 days. This indicates an 18.43% increase year over year.
Advanced Micro Devices, Inc. price-consensus-chart | Advanced Micro Devices, Inc. Quote
The Zacks Consensus Estimate for MU’s 2025 earnings is pegged at $7.77 per share, which has increased 12.1% over the past 30 days. This indicates a 497.69% increase year over year.
Micron Technology, Inc. price-consensus-chart | Micron Technology, Inc. Quote
AMD earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 2.30%. MU earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 9.70%. The average surprise of Micron Technology is higher than that of Advanced Micro Devices.
While both AMD and Micron Technology stand to benefit from the AI-driven semiconductor boom, MU appears to have more upside potential. Its higher earnings surprise history, strong earnings growth, expanding HBM demand, and better valuation metrics give MU 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, MU carries a Zacks Rank #2 (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 (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
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