Carlosoo wrote a post · Oct 7, 2023 20:04

AMD isn't on the same level as Nvidia

While Nvidia focuses solely on GPUs, AMD has a wide product suite. AMD has a wide reach in the computing industry with its embedded processor, CPU, and data center product lines. As a result, AMD becomes a proxy for the computing industry as a whole, not just in a specific GPU sector in which Nvidia has seen incredible growth.

While this hurts AMD during boom times, it also helps during downturns. This is evident in their revenue growth rates over the past three years, as the last year hasn't been great for GPU sales.

But, with Nvidia's recent success, AMD looks left behind with its 18% revenue shrink compared to Nvidia's double.

However, when earnings are considered (I'm using forward earnings because both companies have had a tumultuous previous 12 months), Nvidia and AMD are valued around the same levels. Why is this the case? It all has to do with margins. Nvidia's margins are significantly better than AMD's, primarily because of its best-in-class technology. $NVIDIA (NVDA.US)$ $Advanced Micro Devices (AMD.US)$

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