NVIDIA vs Advanced Micro Devices Which Is More Lucrative?

NVIDIA and Advanced Micro Devices (AMD) are two of the leaders in the semiconductor industry, known for their cutting-edge technology and innovative products. Both companies have seen significant growth in recent years, with their stocks gaining attention from investors worldwide. NVIDIA is known for its high-performance graphics processing units (GPUs) used in gaming, artificial intelligence, and data center applications, while AMD is gaining market share with its powerful processors for computer and gaming consoles. As these two giants compete for market dominance, investors are closely watching their stock performance to make informed decisions.

NVIDIA or Advanced Micro Devices?

When comparing NVIDIA and Advanced Micro Devices, 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 NVIDIA and Advanced Micro Devices.

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. NVIDIA has a dividend yield of 0.02%, while Advanced Micro Devices has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. NVIDIA reports a 5-year dividend growth of -23.48% year and a payout ratio of 1.09%. On the other hand, Advanced Micro Devices reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 NVIDIA P/E ratio at 53.42 and Advanced Micro Devices's P/E ratio at 115.87. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. NVIDIA P/B ratio is 51.13 while Advanced Micro Devices's P/B ratio is 3.71.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, NVIDIA has seen a 5-year revenue growth of 1.68%, while Advanced Micro Devices's is 1.29%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with NVIDIA's ROE at 116.71% and Advanced Micro Devices's ROE at 3.24%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $135.80 for NVIDIA and $129.07 for Advanced Micro Devices. Over the past year, NVIDIA's prices ranged from $47.32 to $152.89, with a yearly change of 223.10%. Advanced Micro Devices's prices fluctuated between $121.83 and $227.30, with a yearly change of 86.57%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.