Better Buy: Ambarella Inc. or Advanced Micro Devices?

Chipmakers Ambarella (NASDAQ: AMBA) and AMD (NASDAQ: AMD) had dramatically diverging fortunes over the past year. Ambarella, which makes image processing chips for a wide range of cameras, shed more than 30% of its market value over the past 12 months. AMD, which sells CPUs and GPUs, rallied over 90%.

Therefore, investors might be wondering if the market is too bearish on Ambarella and too bullish on AMD. Let's take a closer look at both chipmakers to see which stock is the better buy at current prices.

Image source: Ambarella.

Source: Fool.com