AMD is no NVDA don't fall into the hype!

2 mars

AMD vs. NVDA:

When looking at these two stocks it's clear that NVDA is the clear winner and will maintain its pricing power over alternatives.

NVDA's Gross margin (75.97%) is +35.57% that of AMD (40.4%).

Although AMD has a low price to sales ratio this is likely due to them having a "Walmart sales model". High volume, low margin.

This is illustrated further when looking at both companies price to cash flow ratio. Despite recent surges in NVDA stock price this has been trending lower for NVDA and higher for AMD.
Most recent price to cash flow ratios: NVDA (54.1) and AMD (188.14). This helps visualize how much investors are paying for each company to generate cash flow.

I don't know about you but I am not willing to get in at these levels and although it is very risky I'm tempted to buy some puts against AMD. Yes they have excellent management and a large economic moat, it does not compare to that of NVDA and it should not be benefiting as greatly as it has recently by NVDA's recent performance.





AMD is now approaching the top of a channel that has been strong resistance for higher moves.
It seems like everyone in the market is un AMD AMD AMD der the impression nothing ever falls. Although it would be bold and extremely risky to buy puts on any AI stock I believe it to be the correct one.

Curious to hear others opinions.

AMD:
https://www.tradingview.com/symbols/NASDAQ-AMD/financials-statistics-and-ratios/?selected=price_cash_flow%2Cgross_margin%2Creturn_on_assets%2Cnet_margin%2Cprice_sales&statistics-period=FQ

NVDA:
tradingview.com/symbols/NASDAQ-NVDA/financials-statistics-and-ratios/?selected=price_cash_flow,return_on_assets,gross_margin,net_margin,price_sales&statistics-period=FQ