NVIDIA vs. AMD: Which Stock To Bet On?

Advanced Micro Devices climbed 6.4% over the last day. You might feel inclined to purchase more shares, or perhaps you want to lessen your investment. However, there is an entirely different viewpoint you could be overlooking. Is there a more advantageous option? It turns out that its counterpart, NVIDIA, provides you with more. NVIDIA (NASDAQ: NVDA) stock presents superior revenue growth during crucial periods, enhanced profitability, and comparatively lower valuation compared to Advanced Micro Devices (AMD) stock, indicating that investing in NVDA may be the wiser choice.

• NVDA’s quarterly revenue growth was 62.5%, in contrast to AMD’s 35.6%.
• Additionally, its Last 12 Months revenue growth was recorded at 65.2%, surpassing AMD’s 31.8%.
• NVDA outperforms in profitability over both periods – LTM margin of 58.8% and a 3-year average of 55.8%.

These distinctions become even more evident when comparing the financials directly. The table illustrates how AMD’s fundamentals compare to those of NVDA regarding growth, margins, momentum, and valuation multiples.

Valuation & Performance Overview

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See detailed fundamentals on Buy or Sell NVDA Stock and Buy or Sell AMD Stock.

Below, we compare market return and related metrics across years.

Historical Market Performance

No matter how impressive the figures, stock investing is never a straightforward journey. You must consider the associated risks. Read NVDA Dip Buyer Analyses and AMD Dip Buyer Analyses to learn how these stocks have experienced declines and recoveries in the past.

Still uncertain about AMD or NVDA? Consider a portfolio approach.

Portfolios Prosper When Stock Selections Underperform

Stocks fluctuate – the crucial point is to remain invested. A diversified portfolio allows you to stay in the market, enhances profits, and minimizes individual stock risk.

The Trefis High Quality (HQ) Portfolio, comprising 30 stocks, has consistently outperformed its benchmark, which includes all three – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is this the case? Collectively, HQ Portfolio stocks have yielded superior returns with reduced risk compared to the benchmark index; providing less of a roller-coaster experience, as indicated in HQ Portfolio performance metrics.