It's generally best to approach the stock market with a long-term perspective, as holding over many years can shield your investment from temporary headwinds. Growth stocks are an excellent place to start, and the tech industry is filled with attractive options. 

Apple (AAPL 2.00%) and Advanced Micro Devices (AMD -1.69%) are worth considering, with one dominating consumer tech and the other a leading chipmaker. Both companies have enjoyed triple-digit stock growth over the last five years but are down since the start of August after less-than-ideal earnings results. However, their long-term outlooks remain strong thanks to their participation in multiple high-growth industries.

As a result, now could be an excellent time to buy the dip on one of these tech giants. So, let's assess whether Apple or AMD is the better growth stock. 

Apple

Apple shares are down 9% since Aug. 1 after posting its third-quarter 2023 results, representing the third consecutive quarter of revenue declines. The company's revenue fell 1% year over year, driven by slides in three of its product segments as macroeconomic headwinds continued to curb consumer spending.

However, market challenges won't last forever, and Apple's dominance in tech will likely provide substantial gains over the long term. The bright spot of Apple's Q3 2023 was services, which enjoyed an 8% rise in revenue. The digital business is made up of earnings from the company's subscription-based platforms, such as Apple TV+ and Music, as well as income from the App Store. The success of these services has made the segment Apple's second-highest-earning division after the iPhone, enjoying significant growth in recent years. 

Moreover, Apple is making promising moves in artificial intelligence (AI) and virtual/augmented reality. Both industries are projected to expand at compound annual growth rates of over 30% through 2030. Meanwhile, Apple's immense brand loyalty with consumers could see it grow into leading positions in these markets.

Apple's annual revenue has risen 48% since 2018, with operating income up 68%. The company has a history of solid growth, with the stature in tech to continue on its current trajectory.

Advanced Micro Devices

Like Apple, AMD shares are down since the start of the month, tumbling 13%. The company's second-quarter 2023 earnings posted on Aug. 2 revealed an 18% year-over-year decline in revenue. The tumble was primarily driven by PC market challenges, which have plagued the company for the last year. Meanwhile, comparisons to chipmaker Nvidia's glowing quarterly results have only pushed AMD's stock down further. 

AMD has heavily invested in AI this year, striving to develop hardware that will match Nvidia's and take its slice of the lucrative industry. However, the company has yet to see much return from its investment as its recently unveiled MI300X AI chip won't be in production until at least the fourth quarter of 2023. As a result, investors might need to wait until next year to benefit from AMD's efforts.

Despite recent hurdles, AMD's annual revenue has climbed 265% since 2019, with operating income up 180%. In that time, the company has become a leader in central processing units (CPUs) and semi-custom chips, supplying hardware across the tech market. AMD's chips can be found powering countless devices, from Sony's PlayStation 5 to an increasing number of PCs, laptops, and handheld gaming machines.

The company's venture into AI strengthens its potential over the long term, making its stock a compelling option.

Is Apple or AMD the better growth stock?

While AMD has solid prospects in multiple areas of tech, Apple's proven dominance in its respective markets makes it a more reliable buy. AMD is active in a highly competitive industry, going up against Nvidia, Intel, and Amazon as it strives to attract companies to its AI chips. Meanwhile, consumers have proven their preference for Apple's products over the years.

In fact, a study from Counterpoint Research recently revealed that smartphone shipments fell 24% year over year in Q2 2023. The declines led Samsung to experience a 37% decline in sales. However, Apple's more moderate tumble of 6% allowed it to grow its market share from 52% to 55%.

Apple will face competition in AI. However, its efforts could flourish as it focuses on the consumer sector while many others are competing in the cloud market. Additionally, Apple could have the upper hand as it utilizes homegrown chips, allowing it to tailor its hardware directly to its software. So, if the choice is between AMD or Apple, the iPhone company is the safer and better growth stock over the long term.