The tech industry is experiencing promising growth, and we’re here to delve into a comparative analysis of two tech giants – AMD and NINOY – to uncover which one holds greater investment potential. Read on to make an informed decision!
Tech Industry Outlook: Growth Potential
As technology advances across industries, companies specializing in semiconductor chips and advanced tech equipment are poised to maintain momentum in the near future. The application of chips in various domains, coupled with a growing demand for semiconductors, is expected to fuel the expansion of the semiconductor industry, projected to reach $1.88 trillion by 2032 at a CAGR of 12.3%.
Similarly, the flourishing tourism and travel sector is driving the demand for digital cameras, spurring growth in the optical instrument market. With players focusing on innovation and increased research and development investments, the global optical instrument and lens market is estimated to grow at a CAGR of 7% to $39.78 billion by 2030.
Comparing AMD and NINOY: A Fundamental Analysis
Recent Developments
AMD recently announced the adoption of its AMD EPYC™ processor-powered Google Cloud N2D virtual machines by SAP for its cloud ERP delivery operations. This move signifies the growing adoption of AMD EPYC for cloud-based workloads, promising further growth for the company.
On the other hand, NINOY released super-telephoto zoom lenses, NIKKOR Z 180-600mm f/5.6-6.3 VR and NIKKOR Z 70-180mm f/2.8, compatible with full-frame/FX-format mirrorless cameras. These innovative lenses offer superior agility and a range of focal lengths, catering to photography enthusiasts.
Financial Performance
In the fiscal first quarter, AMD’s net revenue declined 9.1% YoY, while its non-GAAP operating income decreased by 40.2% YoY. Meanwhile, NINOY witnessed revenue growth of 16.4% YoY in the fiscal year that ended on March 31, 2023.
Looking ahead, analysts expect AMD’s revenue and EPS to decline in the fiscal year ending December 2023, while NINOY’s revenue is anticipated to increase by 49.4% and 7.8% YoY for the years ending March 2024 and March 2025, respectively.
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Profitability and Valuation
NINOY boasts higher profitability with trailing-12-month EBIT and net income margins of 9.20% and 7.16% compared to AMD’s 0.73% and 1.71%, respectively.
In terms of valuation, NINOY appears more attractive, trading at lower forward EV/Sales and EV/EBITDA multiples compared to AMD.
POWR Ratings
NINOY is rated B (Buy) in our POWR Ratings system, indicating its favorable investment potential. On the other hand, AMD receives an overall D (Sell) rating.
The Verdict
Considering NINOY’s robust profitability, attractive valuation, and promising growth estimates, it stands as the preferred choice over AMD. Additionally, NINOY’s steady dividend yield of 2.70% further adds to its appeal.
As the tech landscape evolves, both AMD and NINOY are positioned for growth. However, based on their financial performance and valuation, NINOY emerges as the stronger investment option. As you explore these tech stocks, remember to analyze factors like growth, momentum, sentiment, and quality to make a well-rounded investment decision. Happy investing!
