Advanced Micro Devices vs NVIDIA

Advanced Micro Devices (AMD) and NVIDIA are two of the biggest players in the semiconductor industry, particularly known for their innovative graphics processing units (GPUs). Both companies have experienced significant growth in recent years, with their stocks being highly sought-after by investors. AMD and NVIDIA are constantly engaged in fierce competition, striving to outperform each other in terms of technological advancements and market share. This comparison between the two companies' stocks will provide valuable insights for potential investors looking to capitalize on the booming semiconductor industry.

Advanced Micro Devices or NVIDIA?

When comparing Advanced Micro Devices and NVIDIA, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Advanced Micro Devices and NVIDIA.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Advanced Micro Devices has a dividend yield of -%, while NVIDIA has a dividend yield of 0.03%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Advanced Micro Devices reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, NVIDIA reports a 5-year dividend growth of -23.48% year and a payout ratio of 1.02%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Advanced Micro Devices P/E ratio at 202.16 and NVIDIA's P/E ratio at 64.02. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Advanced Micro Devices P/B ratio is 4.84 while NVIDIA's P/B ratio is 58.35.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Advanced Micro Devices has seen a 5-year revenue growth of 1.29%, while NVIDIA's is 1.68%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Advanced Micro Devices's ROE at 2.42% and NVIDIA's ROE at 115.52%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $165.15 for Advanced Micro Devices and $136.30 for NVIDIA. Over the past year, Advanced Micro Devices's prices ranged from $93.12 to $227.30, with a yearly change of 144.09%. NVIDIA's prices fluctuated between $39.23 and $140.76, with a yearly change of 258.81%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.