DailyHum Logo
Better Semiconductor Stock: Nvidia or AMD
Nov 28, 2021 | The Motley Fool
Picture - Better Semiconductor Stock: Nvidia or AMD

Last December, I compared two of the market's hottest semiconductor stocks: Nvidia(NASDAQ:NVDA) and Advanced Micro Devices(NASDAQ:AMD).

At the time, I said AMD was a better buy than Nvidia because I believed it was better insulated from macro headwinds, it would benefit from the arrivals of the new PlayStation 5 and Xbox Series consoles, and it would continue to grow its market share against Intel (NASDAQ:INTC).

However, Nvidia's stock price has rallied nearly 150% since I wrote that article, while AMD's stock has only advanced about 70%. Let's take a fresh look at both chipmakers to see if I made the wrong call last year.

I had expected Nvidia's gaming and data center GPU businesses, which both experienced strong growth during the pandemic, to lose their momentum as the pandemic passed, people played fewer games, and data centers faced less pressure to upgrade their AI-processing servers. But that slowdown never happened.

Sponsored
2 hours ago | Entrepreneur
3 Sales & Earnings Growth Winners
Sustainable safaris in South Luangwa
4 hours ago | A Luxury Travel Blog
Travel
Win a luxury short stay in Santorini!
6 hours ago | A Luxury Travel Blog
Travel
Terrace Cemetery in Wendover, Utah
8 hours ago | Atlas Obscura
Travel