As technical innovations in energy, automotive and artificial intelligence continue at an unprecedented pace, semiconductors have emerged as an absolute necessity across many industries. As demand for semiconductors from car makers to consumer electronics has increased sharply, we think Advanced Micro Devices (NASDAQ:AMD) and Synopsys (NASDAQ:SNPS) are poised for significant growth this year and beyond. But let’s find out which of these stocks is a better buy now. Read on.Both Advanced Micro Devices, Inc. (AMD) in Santa Clara, Calif., and Mountain View, Calif.-based Synopsys, Inc. (SNPS) are at the forefront of the semiconductor industry, offering integrated graphics processing units, test integrated circuits, and microprocessors to manufacturers, public cloud service providers, and other professionals. AMD operates through two segments: Computing and Graphics; and Enterprise, Embedded, and Semi-Custom. SNPS operates Fusion Design Platform, a digital design implementation solution; Verification Continuum Platform for virtual prototyping, debug solutions, static and formal verification; and FPGA to perform specific functions.
According to the World Semiconductor Trade Statistics (WSTS) semiconductor market forecast for spring 2021, annual global sales of semiconductors is expected to increase 19.7% in 2021 and 8.8% in 2022. Since semiconductors are a prerequisite for most endeavors in advanced technologies across most industries—from automotive to electronics—the semiconductor industry is projected to grow substantially this year and beyond. Furthermore, the Biden administration’s plan to reduce dependence on foreign chip suppliers by incentivizing domestic producers should position leading semiconductor players AMD and SNPS for sustainable growth.
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