Better Chip Stock: Nvidia vs. AMD
The things affecting Nvidia's stock price are not entirely related to the state of its business.
Nvidia's (NVDA) shareholders have faced a challenging week after CEO Jensen Huang's extramarital affair and an executive's resignation. However, AMD (AMD) shareholders appear to be in better shape, with the company experiencing surging data center sales. The question remains: which stock is the better buy? Nvidia's data center sales rose 117% year over year to $89 billion in Q2, while AMD's data center revenue grew 97% to $8.5 billion in Q3.
Despite AMD's broader business, its overall growth was 45%, bringing its top line to $13.4 billion. Nvidia's data center business accounts for a larger portion of its total revenue, resulting in a 106% YoY growth rate, compared to AMD's 45%. Nvidia's management expects a 70% revenue growth in fiscal 2028, confident in its AI-driven business.
Considering growth and valuation, Nvidia appears to be the better investment choice, especially at its current lower price.
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