AMD's Under-the-Radar Growth Amid Nvidia's AI Dominance

Advanced Micro Devices (AMD) is building a solid presence in the semiconductor market, often overlooked amidst Nvidia's AI dominance. AMD's focus on high-performance computing, gaming, and graphics processing units (GPUs) positions it for growth in emerging technologies such as artificial intelligence, machine learning, and cloud computing. With a growing market share and increasing adoption of its Ryzen and Radeon products, AMD is poised for long-term success.

Title: AMD vs. APH: Navigating the Tech Supply Chain Landscape

Advanced Micro Devices (AMD) and Amphenol (APH) are two key players in the technology supply chain ecosystem. AMD powers the semiconductor side with CPUs and GPUs, driving PCs, data centers, and AI workloads, while Amphenol delivers the connectors and interconnect systems that enable these technologies across various markets. Both companies serve different but equally essential roles in driving global tech growth.

# Market Size and Growth Projections

According to a report by Fortune Business Insight, the global semiconductor market size was valued at $681.05 billion in 2024 and is projected to grow from $755.28 billion in 2025 to $2,062.59 billion by 2032, reflecting a CAGR of 15.4% during the forecast period from 2025 to 2032. The global connector market size was valued at $87.03 billion in 2024 and is projected to grow from $91.31 billion in 2025 to $147.44 billion by 2032, reflecting a CAGR of 7.1% during the same period [1].

# AMD's Position in the Market

AMD is benefiting from strong demand across its product portfolio, including record sales of EPYC and Ryzen processors. Its strong presence in the data center market, driven by the robust adoption of EPYC processors for cloud, enterprise workloads, and AI use cases, has been noteworthy. In the second quarter of 2025, data center revenues increased 14.3% year over year to $3.240 billion, accounting for 42.2% of total revenues. AMD is strengthening its footprint in the AI market through an expanding portfolio. In June, AMD unveiled its new Instinct MI350 Series GPUs and open rack-scale AI infrastructure, showcasing significant AI performance and energy efficiency advancements alongside major industry partners [1].

# APH's Diversified Business Model

Amphenol benefits from a diversified business model with a strong portfolio of solutions, including high-technology interconnect products. Acquisitions are also helping Amphenol expand its position across a broad array of technologies and markets. In June, APH launched its UQD and UQDB liquid cooling connector series, designed to enhance thermal management in high-reliability systems like AI data centers, EV charging infrastructure, and energy storage. Both series meet Open Compute Project standards and feature corrosion-resistant materials, leak-free seals, and tool-free integration for demanding liquid-cooled environments. APH’s expanding portfolio is helping drive order growth, which jumped 36% year over year and 4% sequentially to $5.523 billion, resulting in a book-to-bill ratio of 0.98:1 in the second quarter of 2025 [1].

# Price Performance and Valuation

Year to date, shares of AMD and APH have appreciated 35.5% and 56.6%, respectively. The outperformance in APH can be attributed to its diversified end-market exposure, expanding interconnect portfolio, and strong acquisition execution. Despite AMD’s expanding portfolio, the company is suffering from stiff competition in the cloud data center and AI chip markets. The challenging macroeconomic environment also remains a headwind [1].

Valuation-wise, AMD and APH shares are currently overvalued, as suggested by a Value Score of F. In terms of forward 12-month Price/Sales, AMD shares are trading at 7.26X, higher than APH’s 5.83X [1].

# Earnings Estimates

The Zacks Consensus Estimate for AMD’s 2025 earnings is pegged at $3.94 per share, which has increased 2.3% over the past 30 days. The Zacks Consensus Estimate for APH’s 2025 earnings is pegged at $3.02 per share, which has increased 12.2% over the past 30 days. AMD earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 2.08%. APH earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 16.25% [1].

# Conclusion

While both AMD and Amphenol present compelling investment opportunities within the technology supply chain, Amphenol appears to have more upside potential. Its diversified portfolio, robust earnings growth, consistent performance, and better valuation metrics give APH an edge. AMD’s expanding portfolio and rich partner base are expected to improve its top-line growth. However, AMD has been suffering from stiff competition, particularly from NVIDIA. Export controls on certain Instinct GPUs to China posed a regulatory challenge. Currently, Amphenol sports a Zacks Rank #1 (Strong Buy), making the stock a stronger pick than AMD, which has a Zacks Rank #3 (Hold) [1].

References
[1] https://www.nasdaq.com/articles/amd-vs-aph-which-tech-supply-chain-stock-better-buy-now