AMD or NVDA

AMD vs NVIDIA: A Comparative Analysis

Advanced Micro Devices (AMD) and NVIDIA are two of the most prominent players in the global semiconductor industry. Both companies specialize in the development of graphics processing units (GPUs), among other technologies, and have made significant contributions to advancements in computing and graphics processing. This blog post will provide a comparative analysis of AMD and NVIDIA, focusing on their company profiles, key statistics, and fundamental differences.

Company Profiles

Advanced Micro Devices (AMD)

AMD is a U.S. technology firm specializing in the development of computer processors1. The company’s main products include microprocessors, embedded processors, and graphic processing units (GPUs)1. AMD was incorporated in 1969 by Jerry Sanders, along with seven of his colleagues from Fairchild Semiconductor1. As of 2022, AMD had a revenue of over $23.5 billion and a net income of $1.3 billion1. The company spent over $5 billion on research and development (R&D) in 20221.

NVIDIA

NVIDIA is another U.S. technology firm that specializes in the design of processors and chipsets, including GPUs for gaming and professional markets2. The company was founded in 1993 by Jensen Huang2. In its 2023 fiscal year, NVIDIA’s revenue amounted to $27 billion2, with the firm spending a record $7.3 billion on R&D2.

Key Statistics

As of 2022, AMD had over 25,000 full-time employees3, while NVIDIA had over 26,196 full-time employees as of 20234. In terms of market capitalization, AMD had a market cap of $162.1 billion5, while NVIDIA had a market cap or net worth of $1.03 trillion6.

Fundamental Differences

When it comes to performance, both companies offer high-quality GPUs that power some of the best graphics cards available today. However, there are some key differences between the two:

• Performance: If we look at GPU benchmarks hierarchy, AMD’s RX 6950 XT owns the top spot at 1080p and 1440p, while Nvidia only wins at 4K or in ray tracing games7.

• Ray Tracing: Nvidia dominates in ray tracing performance, with its RTX 4090 nearly doubling AMD’s best AMD RX 7900 XTX8.

• Value: In terms of value for money, AMD comes out on top with its forward P/E and P/FCF significantly lower than Nvidia’s910.

In conclusion, both AMD and NVIDIA have their strengths and weaknesses. While NVIDIA leads in terms of market capitalization and ray tracing performance, AMD offers more value for money. Therefore, the choice between AMD and NVIDIA would largely depend on individual preferences and specific requirements.

From a technical side, we tend to see that long term, both companies are great, but AMD likely wins in overall value, but that is my opinion based on trend analysis. For more information about the technicals between these two companies, subscribe to our forums where I share my personal charts & price targets.

Nick Tussing

Yolo to the Moon 🚀

Stock & Crypto Community

Not a financial advisor

Not financial advice

Sources: 1 2 3 5 6 7 10 11 13 14