Advanced Micro Devices vs. ASML: Which Semiconductor Stock Is a Better Buy in 2026?
Both are essential to the AI chip build-out, but they carry very different risk profiles depending on where they sit in the supply chain.
Overview
The semiconductor landscape is shifting as artificial intelligence requires more powerful hardware. Choosing between Advanced Micro Devices (NASDAQ:AMD) and ASML (NASDAQ:ASML) means deciding between a chip designer and the equipment maker powering the entire industry.
AMD designs the processors and graphics units used in data centers. Meanwhile, ASML builds the complex lithography machines used to print circuits on silicon. Investors often use the P/S ratio, which compares market value to sales over the past twelve months, to evaluate these businesses.
Details
AMD focuses on high-performance computing, selling CPUs and GPUs to data centers and gaming brands. Its latest annual report, filed in early 2025, highlights a multiyear partnership with OpenAI for artificial intelligence infrastructure. The company also supplies chips for consoles made by Sony and Microsoft (NASDAQ:MSFT). AMD relies on a small number of customers for a substantial portion of its revenue, including hyperscale data center operators. Customer concentration like this adds a layer of risk to the business.
Source
Originally published at www.fool.com.