The Better Semiconductor Stock to Buy: QCOM vs. AMD.

While many analysts expect the ongoing chip shortage to continue through the following year, the surging demand for advanced and efficient chips and rising investments to ramp up production should drive the semiconductor industry’s growth. Moreover, the U.S. Senate voted in favor of the $280 billion CHIPS-Plus package yesterday to bolster domestic semiconductor manufacturing, which should bode well for the industry.

Investors’ interest in this space is evident from the SPDR S&P Semiconductor ETF’s $Spdr Series Trust Spdr S&P Semiconductor Etf (XSD.US)$ 3.4% gains over the past month versus the SPDR S&P 500 Trust ETF’s $SPDR S&P 500 ETF (SPY.US)$ 0.2% returns. According to Deloitte, the global semiconductor chip industry is expected to reach about $600 billion in 2022. So, Qualcomm Incorporated and AMD should stay afloat amid the volatile market conditions.

QCOM is a multinational semiconductor and telecommunications equipment company that develops and delivers products and services based on CDMA technology used in digital wireless communications equipment and satellite ground stations. It operates through Qualcomm CDMA Technologies; Qualcomm Technology Licensing; and Qualcomm Strategic Initiatives segments.

On the other hand, AMD manufactures microprocessors, chipsets, GPUs, server and embedded processors, semi-custom SoC products, and technology for game consoles and offers assembly, testing, and packaging services.