Better Semiconductor Stock: AMD vs. Marvell Technology Group

The semiconductor industry was hit hard in the first half of 2022. As measured by the iShares Semiconductor ETF (NASDAQ: SOXX), chip stocks are down an average of 35% so far this year, compared to a negative 27% return for the Nasdaq Composite index.

Investors are worried that the U.S. Federal Reserve's interest rate hikes could send the economy into a recession. Though the global chip shortage is still keeping many semiconductor companies in growth mode, consumer spending on electronics is already easing up -- and some fear that business spending on chips could be next and that it could start happening as early as 2023.

Whether a big slowdown arrives or not, chip stocks have priced in a cyclical downturn anyway. Even top growth stories Advanced Micro Devices (NASDAQ: AMD) and Marvell Technology Group (NASDAQ: MRVL) have taken a hit. Both are busy integrating transformational acquisitions at the moment too. But given the long-term tech trends propelling these businesses higher, they could be a value right now. Is one of them a better buy?

Source Fool.com