Market Comparison of AMD and Nvidia
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: NASDAQ.COM
- Market Performance Divergence: Despite Nvidia's stock soaring 1,120% in 2023 compared to AMD's 242%, AMD has outperformed over the past year with a 165% increase versus Nvidia's 82%, indicating AMD's short-term investment appeal.
- Revenue Comparison: Nvidia's latest quarterly revenue reached $68.2 billion, up 73% year-over-year, with its data center segment generating $62.3 billion, a 75% increase; in contrast, AMD reported $10.3 billion in revenue, a 34% increase, with its data center segment at $5.4 billion, up 39%, highlighting Nvidia's market dominance.
- Growth Expectations: AMD aims for a 35% compounded annual growth rate (CAGR) over the next five years, with its data center division projected to grow at 60%, indicating AMD's efforts to close the gap with Nvidia, though it will take time to realize this potential.
- Valuation Discrepancy: Despite Nvidia's growth rate being double that of AMD, AMD's stock trades at over a 50% premium compared to Nvidia, suggesting a mispricing that may prompt investors to reassess the investment value of both companies.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 196.510
Low
200.00
Averages
264.97
High
352.00
Current: 196.510
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Insatiable GPU Demand: Nvidia's graphics processing units (GPUs) are in high demand, having expanded from gaming to applications in engineering simulations, drug discovery, and cryptocurrency mining, with AI being the largest use case yet to reach peak demand.
- Strong Capital Expenditure Outlook: Nvidia anticipates global data center capital expenditures could rise to $3 trillion to $4 trillion by 2030, representing significant growth potential, positioning Nvidia as a primary beneficiary in this expanding market.
- Impressive Financial Performance: Nvidia achieved a remarkable 73% growth in the last quarter, with revenue projections of 79% and 85% growth for the next two quarters, and despite a seemingly high P/E ratio, the stock is viewed as a bargain considering its future growth potential.
See More
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- Optimistic Analyst Ratings: According to Koyfin, of the 60 analysts covering Nvidia, 57 have a 'Buy' rating, reflecting strong market confidence in Nvidia's future performance, which is mirrored in the stock price, rising 2% on Wednesday for the 11th consecutive trading day.
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See More
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- Tech Stock Momentum: The Nasdaq index also crossed 26,000 in the previous session, with Nasdaq futures up 0.4% and S&P 500 futures gaining 0.2%, reflecting sustained investor interest and optimism in technology stocks.
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See More
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- Revenue Record: The company's revenue reached NT$1.134 trillion (approximately $35 billion) in Q1, surpassing the market expectation of NT$1.127 trillion and reflecting a 35% year-on-year growth, showcasing TSMC's strong performance in the global semiconductor market.
- Advanced Process Growth: TSMC's high-performance computing division, which includes AI and 5G applications, accounted for 61% of total revenue in Q1, while advanced chips of 7 nanometers or smaller made up 74% of total wafer revenue, highlighting the company's competitive edge in the high-end market.
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See More
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- Japan's Performance: The Nikkei 225 index hit a new high, driven by a broader rally in Asian markets, particularly in technology and consumer cyclical stocks, reflecting investor confidence in the region's economic recovery.
- China's Economic Growth: China's GDP grew by 5% in the first quarter, exceeding economists' forecast of 4.8%, as reported by the National Bureau of Statistics, showcasing the resilience of the Chinese economy despite potential global demand shocks from the Iran conflict.
- World Bank Caution: The World Bank president cautioned in an interview that economic disruptions related to conflicts could last for months, even if the current fragile ceasefire holds, posing a potential threat to global economic recovery.
See More
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- Record Revenue: The company's revenue reached NT$1.134 trillion (approximately $35 billion), exceeding the expected NT$1.127 trillion, marking the fourth consecutive quarter of record revenue and highlighting its strong performance in the semiconductor market.
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See More
