A comparison of two major semiconductor companies shows AMD generated $34.6 billion（約5.5兆円） in FY 2025 revenue with 34.3% growth, positioning it as a high-growth play in AI infrastructure but with a rich 69.5x forward P/E valuation and concentration risk among major customers. Texas Instruments generated $17.7 billion（約2.8兆円） with 13% growth and a lower 38.3x forward P/E, serving over 100,000 customers across industrial and automotive sectors with a stronger 28.3% net margin, making it a steadier, more diversified choice for conservative investors seeking dividend income.
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AMD reported FY 2025 revenue of nearly $34.6 billion（約5.5兆円） (a 34.3% increase) and net income of approximately $4.3 billion（約6900億円）, while Texas Instruments reported revenue of roughly $17.7 billion（約2.8兆円） (a 13.0% increase) and net income of approximately $5.0 billion（約8000億円）. AMD trades at a forward P/E of 69.5x compared with Texas Instruments at 38.3x.
Why it matters
AMD focuses on high-performance AI accelerators and processors for data centers, relying on major partners like Microsoft and Sony; Texas Instruments serves over 100,000 customers globally across industrial, automotive, and consumer electronics with lower customer concentration risk. AMD's net margin is roughly 12.5%, while Texas Instruments' is a robust 28.3%, reflecting their different business models and market positions.
What to watch
AMD faces volatility from U.S. export controls on AI chips to China and depends on third-party foundries like TSMC for manufacturing. Texas Instruments faces pricing pressure from global competitors and economic sensitivity in industrial and automotive markets. Both companies stand to benefit from growing semiconductor demand, but AMD offers more upside potential while Texas Instruments provides steadier, more conservative returns and pays a dividend.
The two companies represent fundamentally different approaches to the semiconductor market. AMD has concentrated its strategy on high-performance computing and AI infrastructure, which has driven its strong 34.3% revenue growth. However, this focus comes with heightened risk: its reliance on a small number of major customers such as Microsoft and Sony creates customer concentration exposure, and its dependence on external foundries like TSMC for manufacturing introduces supply chain vulnerabilities. Additionally, U.S. export controls on advanced AI chips destined for China create unpredictable regulatory headwinds.
Texas Instruments operates with a far more distributed business model, serving over 100,000 customers across industrial, automotive, consumer electronics, and data center power management segments. This diversification is reflected in its dramatically higher net margin of 28.3% compared with AMD's 12.5%, suggesting more stable and predictable profitability. The trade-off is slower top-line growth at 13.0% versus AMD's 34.3%. Texas Instruments also manufactures its own chips rather than outsourcing, giving it greater control over production but also exposing it to depreciation costs and demand cycles in capital-intensive industries.
From a valuation perspective, Texas Instruments appears more reasonably priced at a 38.3x forward P/E versus AMD's 69.5x, leaving less room for AMD to justify its valuation through execution. Both companies benefit from strong overall semiconductor demand, but investors must decide whether they prefer AMD's higher growth potential with concentration and regulatory risks, or Texas Instruments' steadier returns, dividend income, and diversified customer base.
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