Advanced Micro Devices (NASDAQ: AMD) and Micron Technologies (NASDAQ: MU) are both underdogs in their respective markets. AMD is the world's second-largest maker of x86 CPUs and discrete GPUs after Intel (NASDAQ: INTC) and Nvidia (NASDAQ: NVDA), respectively. Micron is the world's third-largest producer of DRAM chips and its fourth-largest supplier of NAND chips. Samsung and SK Hynix lead both the DRAM and NAND markets.

Yet AMD and Micron both have unique competitive advantages.

AMD, by outsourcing its production to Taiwan Semiconductor Manufacturing, sells denser, cheaper, and more power-efficient CPUs than Intel. It also sells cheaper GPUs than Nvidia. Micron, which operates its own foundries, produces denser memory chips than its South Korean competitors.

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Source Fool.com