NVDA - Better Semiconductor Stock: Nvidia or Advanced Micro Devices
2024-06-30 04:05:00 ET
In the battle for chip supremacy, two of the top companies battling it out are Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD) . Over the past five years, both stocks have been strong performers. AMD is up over 433% during that stretch, which is outstanding. However, that return pales in comparison to the over 3,000% gain in Nvidia's stock.
Nvidia has been the better stock during the past five years, but which stock will likely outperform over the next five?
At the moment, the buildout of artificial intelligence (AI) infrastructure benefits both companies, given the demand for the graphic processing units (GPUs) needed to power large language model (LLM) training and artificial intelligence (AI) inference. This insatiable demand for GPUs led Nvidia's data center segment to post $22.6 billion in fiscal 2025 Q1 revenue (for the quarter ending April 28, 2024), an incredible 427% year-over-year increase. AMD's data center segment, meanwhile, saw its fiscal 2024 first-quarter revenue soar more than 80% year over year to $2.3 billion.
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Better Semiconductor Stock: Nvidia or Advanced Micro Devices