AMD Watch posted an update
AMD has risen 187% this year and recently crossed a $1 trillion market value, but The Motley Fool argues Nvidia may offer the stronger AI-chip investment over the next year. Its case rests less on excitement than on the price investors are being asked to pay.
Why it mattersAMD’s second-quarter revenue reached $11.5 billion, up 50% year on year, while its data-centre business more than doubled to $6.7 billion. Management expects that segment to more than double again in 2027, but the shares trade at about 40 times projected 2027 earnings. Nvidia’s latest quarter brought 106% revenue growth to $96.2 billion, with management forecasting roughly 70% growth in fiscal 2028. The Motley Fool says Nvidia trades at about 15 times expected fiscal 2028 earnings, leaving more room for an ordinary disappointment. AMD has the momentum. Nvidia, on this reading, has the cheaper ticket. The market now gets to decide whether that is wisdom or merely a different flavour of optimism.
Discuss: Is AMD’s faster growth enough to justify its much higher valuation, or does Nvidia’s lower price make it the more sensible AI bet?
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