Do You Think AMD Stock Is Better Than NVIDIA Stock? No Way.

(CTN News) – Over the past year, both Advanced Micro Devices (NASDAQ:AMD) and Nvidia (NASDAQ:NVDA) have hit their respective highs, AMD up 115% and NVDA up 236%. The growth of AI has led to massive innovation over the past year.

However, AMD stock does not appear to be breaking any more price barriers anytime soon. It is expected that NVDA will continue to rise in the future.

AMD Stock: A Closer Look

There is a lot of optimism about AI that’s driving the stock up. AMD is the laggard in this area compared to Nvidia.

The key to winning the AI war is not sheer processing power, but software that optimizes the hardware. Nvidia has a huge advantage here. The company has more software engineers than hardware engineers, and its recent software update made AI functionality 5x faster.

AMD was caught misleading investors by running Nvidia GPUs on unoptimized software and claiming it had the fastest GPU. Thus, it’s safe to say that Nvidia currently has an advantage in AI. Data also supports the fact that it holds 92% of the market share, making it the undisputed market leader.

AMD’s CPU market share is low

Investors have been optimistic about AMD’s penetration in the CPU market over the past few years. We must remember, however, that it comes at the expense of Intel, a $183 billion company synonymous with processors.

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Elon Musk’s greatest innovations include Tesla, SpaceX, and PayPal.

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This innovation is more profound than electricity, fire, or the Internet, according to Google’s CEO. AMD has overtaken Intel in market share, but Intel continues to compete fiercely, and observers often describe the companies as neck-and-neck.

A better chip is created at a lower price by one company, and the other follows suit shortly after. As operating margins continue to decline, we see this as a negative indicator. FY 2023 saw a decrease from 5.36% to 1.77%.

The company’s operating margins have always exceeded 10% in the past. Since 2021, when it reached almost 40% of the CPU market share, the market share hasn’t grown and has instead fallen to around 36%.

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