amd vs nvidia stock comparison

Which one is better to buy, Nvidia or AMD market share? 

Since several years ago, Advanced Micro Devices (AMD) and Nvidia (NVDA) have dominated the lucrative graphic processor (GPU) industry, with both companies' shares rising by triple digits in the past year. This year, both companies are prepared to launch new, more potent GPUs, with Nvidia aiming for the gaming industry's upper echelons and AMD's expanding middle range. While AMD is a more diverse semiconductor and competes with Intel Corp (INTC) in the CPU microprocessor market, Nvidia is a graphics chip specialist. Here, we'll examine AMD and Nvidia, emphasizing their most recent GPU innovations and potential plans. For a better understanding of Nvidia vs. AMD market share, you can review the information below in the content. 

AMD or Advanced Micro Devices Stocks

Because of the variety of its businesses, AMD makes a good investment. By collaborating with numerous well-known tech companies, the chipmaker has established strong positions in a number of areas. For instance, only AMD CPUs power the current generation of video game consoles from Sony and Microsoft, the Azure and Google Cloud cloud computing services, and many other devices like laptops and portable gaming consoles. AMD is also diversifying into new fields of technology. 
The tech behemoth bought Xilinx last year, a maker of processors for specialized applications in the aerospace, industrial, artificial intelligence, and defense industries. With revenue increasing by more than 1,700% from the previous year in 2022, thanks to the acquisition, AMD's earnings have been further diversified, and its embedded division has benefited.
Additionally, AMD offers bright possibilities for the development of AI. The business appeared to have a slower market entry than Nvidia. Lisa Su, CEO of AMD, is tremendously determined to change all of that, though. "If you look out five years, AI will be in all of the products at AMD, and it will be the top growth driver," the senior executive declared in May.
Since the business teamed up with Microsoft, which supports AMD's AI chip development through monetary and technical resources to produce a rival to Nvidia's products, its chance of succeeding in AI has only increased.

Nvidia Stocks

This stock, Nvidia, is the topic of conversation at the moment. Analysts have been speculating about this being the beginning of the fourth industrial revolution for some time, and one that they anticipate NVIDIA being at the vanguard of since their Q1 results startled Wall Street with a big AI-fueled leap in future projections. After a good start to the year, NVIDIA's shares have increased by more than 50% in the last two months. With this move, they have returned to all-time highs and have joined the exclusive group of stocks with a $1 trillion market cap. 
Nvidia was one of the first companies to release high-end graphics processing units (GPUs) for the consumer market. Since its foundation in 1993, it has built a reputation for developing these processors. Millions of users built custom PCs using Nvidia GPUs as a result of the chips.

However, the business has since utilized its supremacy in the industry to penetrate less-dependant areas like artificial intelligence and cloud computing. The company's efforts have been worthwhile, as the data center category will provide the most revenue in 2022 and will rise 41% yearly.

According to TrendForce research published in March, ChatGPT alone used 20,000 graphics processing units (GPUs) in 2020, and as its user base grows, that number is anticipated to reach 30,000. In the years to come, Nvidia's stock price may go even higher if it continues to outpace AMD and establish itself as the go-to option for AI companies needing potent CPUs.

Read also: is Nvidia stock a good buy

Detail Comparison: 

Predicting whether AMD or Nvidia would gain more market share is impossible. As the industry grows, both businesses are expected to gain market share, which makes investing in one of them appealing.

However, if you compare the businesses of these two entities as a whole, AMD is the stronger investment. Its business is more diversified in several areas than Nvidia's, resulting in a more dependable investment. For instance, AMD excels in GPUs and central processing units concerning consumer chip offerings, whereas Nvidia nearly exclusively focuses on GPUs. With partnerships with Sony, Microsoft, and Valve, even AMD's gaming console industry is more diverse. Meanwhile, Nintendo's Switch console is Nvidia's primary source of revenue from console gaming.

In addition, AMD has a better financial situation than Nvidia because of its lower price-to-free revenue ratio (P/CF) of 80 versus Nvidia's higher P/CF of 190. Both numbers exceed what is regarded as a good deal. Nevertheless, AMD's lower P/CF indicates it is currently in better shape and a superior buy.

Also Read: What AI Stocks to Buy if you missed out on Nvidia Stock

Olivia Johnson 08 Aug, 2023


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