Best Semiconductor Stock to Buy: Micron Stock vs. AMD Stock

Parkev Tatevosian, CFA•Jul 11, 2026

Summary

Parkev Tatevosian, CFA provides a comprehensive comparison between AMD and Micron Technology, focusing on their roles in the AI-driven data center market. Parkev Tatevosian, CFA highlights that Micron is currently experiencing exponential revenue growth driven by massive demand and high pricing for high-bandwidth memory (HBM). In contrast, AMD’s growth in the CPU space is described by Parkev Tatevosian, CFA as more persistent and long-lasting, particularly as agentic AI increases the importance of CPUs relative to GPUs.

Parkev Tatevosian, CFA notes a significant disparity in profitability, with Micron reporting operating profit margins over 80% in its most recent quarter, compared to AMD's 11.75%. Parkev Tatevosian, CFA also observes that Micron leads in return on invested capital. Despite these strengths, Parkev Tatevosian, CFA points out that the market assigns Micron a much lower valuation because investors fear its current boom is temporary and cyclical, whereas AMD's growth is viewed as a structural, long-term shift.

Using a discounted cash flow model, Parkev Tatevosian, CFA concludes that AMD is currently overvalued, while Micron remains undervalued despite its recent price surge. Parkev Tatevosian, CFA identifies a fair value of $1,510 for Micron and $381 for AMD based on current projections.

**AMD (AMD):** Parkev Tatevosian, CFA argues that AMD is currently overvalued, noting that its market price of $547 is significantly higher than his calculated fair value of $381. Parkev Tatevosian, CFA acknowledges the company's potential in the CPU market for agentic AI but is concerned by the high forward P/E ratio of 73. Parkev Tatevosian, CFA believes the stock is priced for perfection before the company has fully delivered on the soaring profit expectations forecasted by analysts.

**Micron Technology (MU):** Parkev Tatevosian, CFA recommends Micron as the superior pick, citing its explosive revenue projections and unmatched operating margins. Parkev Tatevosian, CFA highlights that the stock trades at a low forward P/E of 13.6, which does not fully reflect the structural improvements in the business. Parkev Tatevosian, CFA calculates an intrinsic value of $1,510 per share, indicating substantial upside from the current market price of $990.

Mentioned Stocks

Sentiment: BUYAction: RECOMMENDED

Reasoning: Parkev Tatevosian, CFA recommends Micron due to its massive revenue growth projections, which are expected to reach $259 billion by 2028. Parkev Tatevosian, CFA highlights its industry-leading operating margins of over 80% and a low forward P/E of 13.6. Parkev Tatevosian, CFA calculates a fair value of $1,510 per share, making the current price of $990 look very attractive.

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AMD

Sentiment: SELL

Reasoning: Parkev Tatevosian, CFA argues that AMD is overvalued at current market prices, trading at $547 while its intrinsic value is estimated at only $381. Parkev Tatevosian, CFA points out that AMD's forward P/E of 73 is six times more expensive than Micron's, and its operating margins of 11.75% lag significantly behind.

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