Home Stock Should you buy AMD or Texas Instruments stock after Q3 results?

Should you buy AMD or Texas Instruments stock after Q3 results?


On Wednesday, Advanced Micro Devices Inc. (NASDAQ:AMD) shares gained more than 2% after announcing better-than-expected quarterly results. On the other hand, fellow semiconductor company Texas Instruments Inc. (NASDAQ:TXN) plunged more than 5% after delivering mixed Q3 results. So, which is the better semiconductor stock to buy?

Advanced Micro Devices

From an investment perspective, Advanced Micro Devices shares trade at steep trailing 12-month and forward P/E ratios of 44.90 and 41.53, respectively. However, analysts expect its earnings per share to grow by nearly 605% this year before rising at an average annual rate of 32.44%.

Therefore, although the stock seems expensively valued, it could be an attractive option for growth investors. 

Source – TradingView

Technically, AMD shares seem to have recently spiked into the overbought conditions of the 14-day RSI. As a result, investors could target short-term pullbacks at about $119, or lower at $111.25.

On the other hand, if the rally continues, the stock could find resistance at about $133.63, or higher at $140.77.

Texas Instruments

Texas instrument shares plummeted on Wednesday pushing its P/E ratio to 26.18. In addition, its forward P/E ratio of about 22.37, make the stock a compelling option for value investors.

However, with analysts forecasting EPS growth of about 14% this year and an average of 105 over the next five years, growth investors could opt for alternatives.

Source – TradingView

Technically, Texas Instruments shares seem to have plunged to complete a downward breakout from an ascending channel formation. As a result, the stock has fallen closer to the oversold conditions of the 14-day RSI.

However, given the current bearish bias in the market, TXN shares could plummet deep into oversold conditions. As a result, investors could target extended declines at about $182.87, or lower to $178.48, while $191.94 and $196.34 are crucial resistance levels.

AMD looks like the better buy

In summary, although Texas Instruments shares have recently plummeted resulting in a more exciting valuation multiple, AMD offers a compelling growth outlook, thus making it the better buy after the recent quarterly results.

The post Should you buy AMD or Texas Instruments stock after Q3 results? appeared first on Invezz.

You may also like