Comprehensive Stock Comparison
Compare Advanced Micro Devices, Inc. (AMD) vs Ambarella, Inc. (AMBA) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | AMD | 34.3% revenue growth vs AMBA's 25.8% |
| Value | AMD | Lower P/E (29.5x vs 98.3x) |
| Quality / Margins | AMD | 12.5% net margin vs AMBA's -21.3% |
| Stability / Safety | AMD | Beta 2.08 vs AMBA's 2.14 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | AMD | +100.5% vs AMBA's -1.8% |
| Efficiency (ROA) | AMD | 5.6% ROA vs AMBA's -10.6%, ROIC 4.7% vs -22.5% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Advanced Micro Devices designs and sells high-performance computing and graphics processors for PCs, data centers, gaming consoles, and embedded systems. It generates revenue primarily from sales of CPUs (~50% of revenue) and GPUs (~30%), with the remainder coming from semi-custom chips for game consoles and embedded processors. AMD's key advantage is its competitive x86 CPU architecture and GPU technology that directly challenges market leader Intel in performance-per-dollar across multiple segments.
Ambarella designs specialized computer vision system-on-chips (SoCs) that process high-definition video and run AI algorithms for cameras in automotive, security, and robotics applications. It generates revenue primarily from semiconductor sales—with automotive (around 60%) and security/industrial (around 40%) as its main segments—through direct sales and distribution channels. The company's moat lies in its proprietary AI processor architecture and deep expertise in video compression and computer vision algorithms, which are difficult to replicate.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
AMD leads in 4 of 6 categories (Financial Metrics, Profitability & Efficiency). AMBA leads in 1 (Valuation Metrics).
Financial Metrics (TTM)
AMD is the larger business by revenue, generating $34.6B annually — 92.7x AMBA's $374M. AMD is the more profitable business, keeping 12.5% of every revenue dollar as net income compared to AMBA's -21.3%.
| Metric | AMDAdvanced Micro De… | AMBAAmbarella, Inc. |
|---|---|---|
| RevenueTrailing 12 months | $34.6B | $374M |
| EBITDAEarnings before interest/tax | $6.7B | -$72M |
| Net IncomeAfter-tax profit | $4.3B | -$80M |
| Free Cash FlowCash after capex | $6.7B | $76M |
| Gross MarginGross profit ÷ Revenue | +49.5% | +59.8% |
| Operating MarginEBIT ÷ Revenue | +10.7% | -23.6% |
| Net MarginNet income ÷ Revenue | +12.5% | -21.3% |
| FCF MarginFCF ÷ Revenue | +19.4% | +20.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | +34.1% | +31.2% |
| EPS Growth (YoY)Latest quarter vs prior year | +2.1% | +39.7% |
Valuation Metrics
| Metric | AMDAdvanced Micro De… | AMBAAmbarella, Inc. |
|---|---|---|
| Market CapShares × price | $326.3B | $2.6B |
| Enterprise ValueMkt cap + debt − cash | $325.3B | $2.5B |
| Trailing P/EPrice ÷ TTM EPS | 75.55x | -21.25x |
| Forward P/EPrice ÷ next-FY EPS est. | 29.55x | 98.34x |
| PEG RatioP/E ÷ EPS growth rate | 14.62x | — |
| EV / EBITDAEnterprise value multiple | 48.56x | — |
| Price / SalesMarket cap ÷ Revenue | 9.42x | 9.12x |
| Price / BookPrice ÷ Book value/share | 5.20x | 4.44x |
| Price / FCFMarket cap ÷ FCF | 48.45x | 110.74x |
Profitability & Efficiency
AMD delivers a 6.9% return on equity — every $100 of shareholder capital generates $7 in annual profit, vs $-13 for AMBA. AMBA carries lower financial leverage with a 0.01x debt-to-equity ratio, signaling a more conservative balance sheet compared to AMD's 0.07x. On the Piotroski fundamental quality scale (0–9), AMD scores 8/9 vs AMBA's 6/9, reflecting strong financial health.
| Metric | AMDAdvanced Micro De… | AMBAAmbarella, Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +6.9% | -13.5% |
| ROA (TTM)Return on assets | +5.6% | -10.6% |
| ROICReturn on invested capital | +4.7% | -22.5% |
| ROCEReturn on capital employed | +5.7% | -22.2% |
| Piotroski ScoreFundamental quality 0–9 | 8 | 6 |
| Debt / EquityFinancial leverage | 0.07x | 0.01x |
| Net DebtTotal debt minus cash | -$1.1B | -$139M |
| Cash & Equiv.Liquid assets | $5.5B | $145M |
| Total DebtShort + long-term debt | $4.5B | $5M |
| Interest CoverageEBIT ÷ Interest expense | 32.68x | — |
Total Returns (with DRIP)
A $10,000 investment in AMD five years ago would be worth $23,175 today (with dividends reinvested), compared to $5,079 for AMBA. Over the past 12 months, AMD leads with a +100.5% total return vs AMBA's -1.8%. The 3-year compound annual growth rate (CAGR) favors AMD at 36.6% vs AMBA's -13.8% — a key indicator of consistent wealth creation.
| Metric | AMDAdvanced Micro De… | AMBAAmbarella, Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -10.4% | -19.7% |
| 1-Year ReturnPast 12 months | +100.5% | -1.8% |
| 3-Year ReturnCumulative with dividends | +154.8% | -36.0% |
| 5-Year ReturnCumulative with dividends | +131.8% | -49.2% |
| 10-Year ReturnCumulative with dividends | +9255.6% | +30.0% |
| CAGR (3Y)Annualised 3-year return | +36.6% | -13.8% |
Risk & Volatility
AMD is the less volatile stock with a 2.08 beta — it tends to amplify market swings less than AMBA's 2.14 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. AMD currently trades 75.0% from its 52-week high vs AMBA's 62.4% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | AMDAdvanced Micro De… | AMBAAmbarella, Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 2.08x | 2.14x |
| 52-Week HighHighest price in past year | $267.08 | $96.69 |
| 52-Week LowLowest price in past year | $76.48 | $38.86 |
| % of 52W HighCurrent price vs 52-week peak | +75.0% | +62.4% |
| RSI (14)Momentum oscillator 0–100 | 43.4 | 59.6 |
| Avg Volume (50D)Average daily shares traded | 31.0M | 726K |
Analyst Outlook
Wall Street rates AMD as "Buy" and AMBA as "Buy". Consensus price targets imply 61.6% upside for AMBA (target: $98) vs 46.5% for AMD (target: $293).
| Metric | AMDAdvanced Micro De… | AMBAAmbarella, Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $293.26 | $97.50 |
| # AnalystsCovering analysts | 69 | 36 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | 0 | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +0.4% | 0.0% |
Historical Charts
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Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Advanced Micro Devi… (AMD) | 100 | 518.9 | +418.9% |
| Ambarella, Inc. (AMBA) | 100 | 105.03 | +5.0% |
Advanced Micro Devi… (AMD) returned +132% over 5 years vs Ambarella, Inc. (AMBA)'s -49%. A $10,000 investment in AMD 5 years ago would be worth $23,175 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Advanced Micro Devi… (AMD) | $4.3B | $34.6B | +702.0% |
| Ambarella, Inc. (AMBA) | $316M | $285M | -10.0% |
Advanced Micro Devices, Inc.'s revenue grew from $4.3B (2016) to $34.6B (2025) — a 26.0% CAGR. Ambarella, Inc.'s revenue grew from $316M (2016) to $285M (2025) — a -1.2% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Advanced Micro Devi… (AMD) | -11.5% | 12.5% | +208.5% |
| Ambarella, Inc. (AMBA) | 24.2% | -41.1% | -270.0% |
Advanced Micro Devices, Inc.'s net margin went from -12% (2016) to 13% (2025). Ambarella, Inc.'s net margin went from 24% (2016) to -41% (2025).
Chart 4P/E Ratio History — 8 Years
| Stock | 2018 | 2025 | Change |
|---|---|---|---|
| Advanced Micro Devi… (AMD) | 57.7 | 80.8 | +40.0% |
Advanced Micro Devices, Inc. has traded in a 45x–278x P/E range over 8 years; current trailing P/E is ~76x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Advanced Micro Devi… (AMD) | -0.6 | 2.65 | +541.7% |
| Ambarella, Inc. (AMBA) | 2.27 | -2.84 | -225.1% |
Advanced Micro Devices, Inc.'s EPS grew from $-0.60 (2016) to $2.65 (2025). Ambarella, Inc.'s EPS grew from $2.27 (2016) to $-2.84 (2025) — a NaN% CAGR.
Chart 6Free Cash Flow — 5 Years
Advanced Micro Devices, Inc. generated $7B FCF in 2025 (+109% vs 2021). Ambarella, Inc. generated $23M FCF in 2025 (-9% vs 2021).
AMD vs AMBA: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is AMD or AMBA a better buy right now?
Advanced Micro Devices, Inc. (AMD) offers the better valuation at 75.6x trailing P/E (29.5x forward), making it the more compelling value choice. Analysts rate Advanced Micro Devices, Inc. (AMD) a "Buy" — based on 69 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — AMD or AMBA?
On forward P/E, Advanced Micro Devices, Inc. is actually cheaper at 29.5x.
03Which is the better long-term investment — AMD or AMBA?
Over the past 5 years, Advanced Micro Devices, Inc. (AMD) delivered a total return of +131.8%, compared to -49.2% for Ambarella, Inc. (AMBA). A $10,000 investment in AMD five years ago would be worth approximately $23K today (assuming dividends reinvested). Over 10 years, the gap is even starker: AMD returned +92.6% versus AMBA's +30.0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — AMD or AMBA?
By beta (market sensitivity over 5 years), Advanced Micro Devices, Inc. (AMD) is the lower-risk stock at 2.08β versus Ambarella, Inc.'s 2.14β — meaning AMBA is approximately 3% more volatile than AMD relative to the S&P 500. On balance sheet safety, Ambarella, Inc. (AMBA) carries a lower debt/equity ratio of 1% versus 7% for Advanced Micro Devices, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — AMD or AMBA?
Advanced Micro Devices, Inc. (AMD) is the more profitable company, earning 12.5% net margin versus -41.1% for Ambarella, Inc. — meaning it keeps 12.5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AMD leads at 10.7% versus -44.4% for AMBA. At the gross margin level — before operating expenses — AMBA leads at 60.5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is AMD or AMBA more undervalued right now?
On forward earnings alone, Advanced Micro Devices, Inc. (AMD) trades at 29.5x forward P/E versus 98.3x for Ambarella, Inc. — 68.8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AMBA: 61.6% to $97.50.
07Which pays a better dividend — AMD or AMBA?
None of the stocks in this comparison currently pay a material dividend. All are effectively zero-yield and should be held for capital appreciation rather than income.
08Is AMD or AMBA better for a retirement portfolio?
For long-horizon retirement investors, Advanced Micro Devices, Inc. (AMD) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding. Ambarella, Inc. (AMBA) carries a higher beta of 2.14 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (AMD: +92.6%, AMBA: +30.0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between AMD and AMBA?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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