Micron Tops AMD as AI Bet With 13.16 P/E Against 68.68
Updated
Updated · Zacks Investment Research · Aug 17
Micron Tops AMD as AI Bet With 13.16 P/E Against 68.68
3 articles · Updated · Zacks Investment Research · Aug 17
Summary
Micron was favored over AMD as the stronger AI stock pick, with a far cheaper 13.16 forward P/E versus AMD’s 68.68 and much higher 72.5% return on equity versus 14.9%.
HBM demand underpins that view: Micron’s fiscal third-quarter revenue jumped to $41.46 billion from $9.3 billion a year earlier, and it guided for about $50 billion in fiscal fourth-quarter sales with an 86% gross margin.
AMD still posted solid AI-driven momentum, reporting $11.5 billion in second-quarter revenue, up 50% year over year, and forecasting roughly $13 billion for the third quarter with a 56% non-GAAP gross margin.
Both companies appear financially sound, but Micron’s 3.42 current ratio tops AMD’s 2.61, reinforcing the case that it offers stronger profitability and a more attractive valuation as AI infrastructure spending rises.