![]() ![]() Advanced Micro Devices and NVIDIA have both benefited. It controls 35 of the x86 CPU market, according to PassMark, while Intel (NASDAQ. While the cyclical nature of product development and releases means that investors shouldn't read too much into short-term disparities, AMD's stronger sales growth lately looks significant considering Nvidia's significantly more growth-dependent valuation. A closer look reveals why AMD deserves a bullish view, while a bearish view may be more accurate for NVDA. Using the TipRanks Stock Comparison tool, we will compare two such chip-making companies, Nvidia and AMD, and examine how Wall Street analysts feel about these stocks. AMD generates most of its revenue from x86 CPUs and discrete GPUs, but it remains the underdog in both markets. Meanwhile, AMD's revenue actually increased 70% year over year in Q2, and the 37% drop for net income that it saw in the quarter still came in significantly lower than Nvidia's profit decline. Nvidia's revenue grew just 3% year over year in the second quarter despite 61% sales growth for the company's data center segment, and the company's net income fell 72%. Keith Noonan: Both AMD and Nvidia are great companies, but I think AMD stock currently has the more attractive risk-reward profile. ![]() To make a case for investing in Nvidia more compelling, the stock is trading at a price-to-sales ratio of 10.4, near the lowest it has sold for in the past five years.ĪMD could be better suited for today's turbulent market As an investor, I would not want to bet against the success of Nvidia over the next 10 years. Those segments could provide growing demand for Nvidia's technology.
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