Should You Buy AMD Stock Instead of Nvidia Stock? | NVDA Stock Analysis | AMD Stock Analysis

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NVDA 실적은 매출·영업이익률·ROIC 모두 AMD를 크게 앞서며 이익 성장이 주가 상승을 정당화한다고 봄. AMD는 PC 교체주기 회복 수혜가 기대되나 아직 실적으로 입증되지 않음. 선행 PER은 NVDA 30.48배, AMD 29.99배로 거의 동일해 펀더멘털이 우수한 NVDA를 선호. 두 종목 모두 매수 의견이나 하나를 고르면 NVDA.

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01. hey everyone now that we got the earnings reports from both Nvidia and AMD and we saw the stock price reactions to those earnings reports a lot of investors are curious now is it finally time to buy AMD stock instead of Nvidia stock after all Nvidia stock price has absolutely soared while AMD stock price is up but it's not up anywhere near how much Nvidia is up so let's take a look at that question and let's understand and let's decide maybe if it's better to capitalize on the artificial intelligence Trend by going with AMD now because Nvidia stock price is already up so much as I highlighted in the beginning of the video nvidia's stock price so far in 2024 is up a whopping 115% year-to date meanwhile AMD is only up 12.86% so you might be saying well it's too late to get into Nvidia the stock price is already soaring it might be more prudent to go with AMD but let's take a closer look here at that question so if you look at Revenue growth from a AMD and Nvidia Nvidia in the orange there you'll notice that over the last decade AMD and Nvidia their revenue growth has been closely correlated fluctuating but closely correlated they're both very close but in the recent few quarters Nvidia has separated itself from AMD its Revenue has absolutely soared while AMD is up from the bottom but it's not up anywhere near as much as Nvidia is 262 Revenue growth in the latest quarterly update when AMD grew just 2.24% so you can understand why Nvidia stock prices up so much is because the company's performance has been so great the revenue growth The Profit growth which I'll talk about next has been phenomenal while AMD has been po to benefit from this AI Trend and they did launch their new Mi uh 300X chip that's gaining traction but it's not yet exploding the way Nvidia is exploding in terms of Revenue and profitability so it's just been like on the cusp of expansion on the cusp of phenomenal growth but it hasn't yet achieved it it hasn't yet delivered the performance anywhere near nvidia's performance and it's a similar story with the operating profit margin Nvidia in the latest trailing 12- month period generated an operating profit margin of 59.84 when AMD generated just 2.55% and then looking back longer term you can see Nvidia has consistently been more profitable than AMD according to this metric the operating profit margin so both in recent quarters and over the longer term Nvidia has outperformed AMD and again that explosion in profitability coupled with the explosion in Revenue justifies nvidia's stock price increase right that stock price increase has been fueled by growth in Revenue growth in profitability and AMD has yet to demonstrate that growth in revenue and that growth in profitability and so you can understand why its stock price has has trailed nvidias now another critical metric to compare Nvidia and AMD is the return on invested Capital this measures how good a business is at using investor money to create products and services that then generate profits so how good are they at that critical task Nvidia has consistently been better than AMD at this and especially most recently 93.75% this Roi YC is unsustainable Nvidia will surely come back down but still over the longer term Nvidia has generated solid and increasing return on invested Capital AMD has done a solid job as well increasing over the past decade before hitting that slump remember the big gap in the replacement cycle for personal computers that caused the big slowdown for amd's business and that caused a decrease in Revenue decrease in profit decrease in every critical metric for AMD because in 2023 fewer people purchased personal computers and AMD has a large business in that segment more so than Nvidia Nvidia only sells gpus into the personal Computing market and not every personal computer has an Nvidia GPU or a GPU at all it might have like an integrated graphics card but AMD not only do they sell their gpus in into the personal Computing Market but they also sell the CPUs into the personal Computing market and their business is more strongly correlated to personal computer sales than is NVIDIA so Nvidia didn't suffer that downtrend as AMD suffered because of that Gap in personal computer sales in 2023 however personal computer sales are rebounding in 2024 and they will move even higher in 202 5 and 2026 because of the replacement cycle of the computers that were purchased in 2020 and 2021 and so AMD will benefit from that Trend more so than Nvidia will coming into the next couple of years so far every metric we've looked at Nvidia was better than AMD considerably better not just slightly better and so if they're trading at a similar valuation what don't you prefer Nvidia over AMD if you can get it for the same price and then you might be thinking no I can't get AMD for the same price AMD stock is up only 12% well nvidia's stock is up significantly more than that that's true but if you look at the valuation according to the forward price the earnings ratio they're selling at the same valuation or roughly the same valuation Nvidia is trading at a forward PE of 30.48 while AMD is trading at a forward price to earnings of $29.99 so according to forward earnings and the price to earnings AMD and Nvidia are the same price and given that nvidia's performance is so much better than amds this is a relatively easy decision to make for me I'm going with Nvidia which might be a counterintuitive conclusion considering that at the beginning of the video we highlighted that Nvidia stock price is already up 115% versus AMD that's only up 12.86% you might be thinking surely there has to be some mean reversion here surely AMD has to catch up to Nvidia and AMD cannot continue underperforming Nvidia going forward however if you consider the fundamental aspects of the business and that's Revenue profit and cash flow and has deserved that stock price increase so you're getting so much more with Nvidia stock today than you were getting in January of 2024 you're getting a business that's grown substantially since then and is expecting to continue to grow substantially for the next few quarters so for all those reasons I still think Nvidia is the better stock to buy here even though I have both of them rated as a buy I like AMD as well but if I had to pick between these too I would pick Nvidia stock today