AMD (Advanced Micro Devices) and NVIDIA are major names in the semiconductor industry and have been making chips for years now. Although these names are quite popular in video gaming, their use case extends even beyond that! These chips are used in a lot of things, such as machine vision, data centers, video rendering, artificial intelligence, and so on.
If we look at the long-term, both of these companies have a lot of demand and are also established, market players. However, there are also many other factors that demand enthusiasm related to semiconductors. If you look at the stock performance, AMD stock is already down by 55%, while NVIDIA stock is down by 59%.
So based on these technical and fundamental readings, which one is a better stock? Today, we will look at both of these stocks to find the company which is superior and can deliver good returns.
NVIDIA Is Innovative
The first point is in favor of Nvidia, and that has to do with the company's innovation! It is involved in making GPUS for a lot of things, such as gaming, AI-driven cars, data centers, and so on.
Since it is not so easy for everyone to enter the chip market, Nvidia has the advantage of charging prices of its own choice. If we look at the gross profit margin of Nvidia, it increased to 65% from the earlier reading of 52%.
In terms of revenue, it also increased to $26.9 billion from only $4.3 billion, which is an increase of almost 6x!
AMD Can Handle Turbulent Market
If we look at the current market conditions, it seems that AMD is better suited to handle the ups and downs! Even in terms of risk-reward ratio, AMD has better numbers on its side!
The Y/Y revenue of Nvidia increased only by3%, while AMD saw an increase of almost 70%. As for the sales growth, NVIDIA saw a decrease of 72%, while AMD was only down by 37%.
Based on the numbers, it seems both of these stocks are strong, and anyone looking to get exposure in the semiconductor sector should look at both!