Better Growth Stock in 2023: Apple vs. AMD - The Motley Fool

A sell-off successful 2022 led the Nasdaq-100 Technology Sector scale to plunge 34% twelvemonth implicit year. As the tech manufacture is known for its wealthiness of maturation stocks, present is an fantabulous clip to put successful the consistently processing sector. 

Apple (AAPL 1.01%) and Advanced Micro Devices (AMD 0.28%) suffered sizeable banal declines successful 2022. However, these companies person retained triple-digit maturation successful their shares implicit the past 5 years, proving the worth of investing successful maturation stocks for the agelong term. 

Although Apple and AMD suffered from macroeconomic headwinds past year, 2023 holds immoderate breathtaking developments for these companies. So, which is the amended buy? Let's instrumentality a look.

Apple plans bigger measurement into virtual and augmented reality

Apple shares fell 27% passim 2022 amid the sell-off. However, the caller twelvemonth is disconnected to a promising start, with the company's banal up 4% successful the past 5 days and up 204% since 2018. Numerous reports successful the archetypal 2 weeks of 2023 person revealed Apple's rumored roadmap for the adjacent mates of years, rallying investors.

One of the biggest nuggets of quality is Apple's plans to task into the virtual/augmented world (VR/AR) markets this twelvemonth with a caller headset. The company's measurement into the booming markets has been rumored for years, with assorted acquisitions and patents concerning the technologies making the question not if but erstwhile Apple would yet propulsion the trigger.

Well, it looks similar the debut of its long-anticipated headset is yet here, with Bloomberg reporting the institution volition denote the headset this spring.

Experts foresee AR and VR becoming a important absorption of exertion successful the adjacent future. According to Grand View Research, the $25.33 cardinal AR market is expected to spot a 40.9% compound yearly maturation complaint (CAGR) done 2030. Meanwhile, the VR marketplace was worthy $21.8 cardinal successful 2021 and volition turn astatine a CAGR of 15% successful the aforesaid period. Apple's immense marque loyalty and proven accomplishment astatine successfully entering caller markets could assistance it go the person of an incredibly lucrative industry.

In summation to a VR/AR headset, reports person revealed the institution is moving connected touchscreen Macs, lower-priced AirPods, and in-house designed telecom chips, which would let it to boost gross by ending partnerships with Qualcomm and Broadcom.

Despite a challenging 12 months, Apple has a agleam aboriginal that volition apt spot its shares soar implicit the agelong term, making 2023 an fantabulous clip to put successful this growth stock. 

AMD could spot console-upgrade catalyst soon

AMD's relation arsenic a person successful the PC manufacture deed its concern harder than astir successful 2022, with user request successful the marketplace suffering steep declines. In the 3rd 4th of 2022, IDC Tracker reported a 15% diminution successful worldwide PC shipments. Meanwhile, graphics processing portion (GPU) shipments fell 25.1% successful the aforesaid quarter.

As a result, AMD's banal plunged 55% passim 2022. However, the company's shares person retained maturation of 490% since 2018 and person started 2023 by rising 9% successful the archetypal 12 days of the year. 

Moreover, portion a declining GPU marketplace is concerning for AMD, its 16% marketplace stock means it won't endure arsenic overmuch arsenic competitors similar Nvidia, with its 72% marketplace share.And AMD has made promising moves to diversify its concern successful different lucrative industries. 

In the 3rd 4th of 2022, AMD's gaming conception gross grew 13.7%, earning $1.63 billion, mostly acknowledgment to partnerships with console manufacturers. Specifically, AMD exclusively supplies graphics and processing hardware to Sony and Microsoft for their wide fashionable gaming consoles. Both companies are expected to merchandise upgraded, beefier versions of their consoles wrong the adjacent 2 years, which would supply AMD with a boost successful revenue.

Additionally, AMD is location to a booming information centers segment. Its gross roseate 45% twelvemonth implicit twelvemonth to $1.6 cardinal successful Q3 2022, earning the largest information of AMD's revenue.

AMD's banal has a upland to climb, but I wouldn't stake against the institution implicit the agelong term. 

Apple and AMD person carved retired unsocial positions successful the tech industry, and their businesses and stocks person soared implicit time. These companies some person promising outlooks; however, Apple is the amended maturation banal successful 2023. 

Apple has a bevy of breathtaking projects successful the works and was little affected by the economical declines successful 2022 than AMD, proving it is the much resilient business. Additionally, AMD shares are trading astatine 42 times its net compared to Apple's preferable price-to-earnings ratio of 22.