NVDA - AMD: A Perplexing Mix Of Risk And Opportunity

2024-07-02 11:13:58 ET

Summary

• NVIDIA Corporation has had a strong year on the back of data center growth - does Advanced Micro Devices, Inc. have an opportunity to make a similar move? We don't think so.
• That said, the company is still in the AI "hunt", so to speak, and shares should see a material upside if Lisa Su and management can execute.
• The valuation is demanding, and we think the balance of risk and reward is keenly balanced here. Enter if you dare.
• We rate AMD a "Hold."

Unless you've been hiding under a rock, you're probably aware that it has been a strong year for NVIDIA Corporation ( NVDA ) so far.

The company has gone on a run for the ages, briefly topping Microsoft Corporation ( MSFT ) and Apple Inc. ( AAPL ) to become the largest company in the world by market cap:

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