Tomahawk, WI 08/07/2014 (Basicsmedia) – The battle of the best companies in the technology space does not get any better than between the two biggest players in the name of Advanced Micro Devices, Inc. (NYSE:AMD) and Intel Corporation (NASDAQ:INTC). Both companies continue to invest heavily on R&D as they look to develop innovative products sure to define the semiconductor industry for the foreseeable future and guarantee better returns.

The formula for ranking companies based on their R&D spending was developed by Anne Marie Knott of the University of Washington.

There may be a lot of segments that Intel ranks better than AMD, but when it comes to ratings in terms of R&D spending returns, AMD ranks top. Last year, Intel spent approximately $10 billion in R&D representing 20% of revenue. AMD on the other hand spent about $1.2 billion on the same representing 22.7% of total revenue.

“Advanced Micro Devices, Inc. (NYSE:AMD), believe it or not ranks better than Intel Corporation (NASDAQ:INTC) when it comes to returns from R&D spending. Here you can see Intel spent $10 billion in R&D last year or about 20% of revenues. AMD spent just $1.2 billion or 23%,” said CNBC’s Dominic Chiu.

According to Professor Anne Marie Knott, a 10% boost of Intel’s Research and development expenses would allow the company to make approximately $323 million worth of revenues. AMD on the other hand if given a 10% boost in R&D would register approximately $104 million worth of returns in revenue.

It goes without saying that both companies have had their fair amount of challenges in the industry with Intel currently dealing with a decline in PC sales as a result of widespread usage of tablets. Advanced Micro Devices, Inc. (NYSE:AMD) on the other hand continues to benefit a great deal from the impressive growth of video games where it has a huge interest through its video games graphic chips.

“They all got their challenges, Intel of course is dealing with Secular PC declines may be things are getting better of businesses with AMD they got a lot of stakes in video games, graphics chips and the video game consoles, ” said Mr. Chiu.

In terms of stock returns, Intel Corporation (NASDAQ:INTC) is the better of the two having posted impressive results in the industry.

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