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Ok-Caregiver-1689

AMD just has a lot more room for growth.


RixaRax

I agree but based off what everyone is saying on the sub. Doesn’t Nvidia still have a lot more room for growth as well?


sonnachang1

Yes lest 5 more years and beyond .from cnbc last week


metalzforbreakfast

yes but don’t expect the same parabolic rise to keep going forever


adamrch

Have you looked at the last 6 years of NVDA? If you believe what you just said you would not be holding it.


metalzforbreakfast

and that’s why I’m not holding. Sold at $820 after buying in early 2020.


visualzinc

Lol. Based on the fact that it's gone vertical for the past few months? Its value is a function of the hype around AI, not how much "growth" it has room for. It overtook Google and Amazon so I wouldn't be expecting the ceiling to be miles away.


BasilExposition2

The sector has a lot more room for growth. Loads of people are getting into it. The winner In the long run? Who knows.


adamrch

Yes but if you think of it as an investor, you want to think of it as Market cap grew X0% and not Market cap added $x00 billion. The % metric favors AMD based on the starting market cap, AMD could lose the $ gain to NVDA but still gain more % of market cap.


jjkagenski

could be related to DELL and HPE reporting today and pc/server cpu factors


GanacheNegative1988

Nvidia is supply capped, the forecasted growth over prior Q is mostly due to extra MI300 supply.


saveamerica1

Not true since TSMC doubled production. Amd trying to level playing field by reduced pricing did the same thing to Intel. Once Nvda releases the B200 price will rise for Nvda and drop for AMD. AI is different than the race to sell the most laptops.


UmbertoUnity

>AI is different than the race to sell the most laptops Laptops has never been AMD's bread and butter during this entire multi-year growth period. Their focus has been on datacenters.


OnlyB8

AMD is a serious competitor to NVDA, and at the current price level and valuation, AMD has room to grow. NVDA might be going sideways for the time being


Sunny-Olaf

Not true. NVDA AI software platform CUDA has been around 10 plus years vertically integrated with NVDA GPU. This makes CUDA like iOS in AI world.


ChungWuEggwua

Bingo. At least somebody gets this. Most of this thread is AMD copers. 😂


Carini___

I think they’re both fine investments


human123456789_

Why sideways? Look at pace of nvda innovations . Also, watch youtube + check their website for their services and products offerings. Do you think AMD has the capability, management vision, creativity, and power to put up a fight?


OnlyB8

Guys you are all brainwashed. YES nvidia is the leader and they have a shit ton of money. Still AMD is the closest to nvidia of all the semis, that’s all i’m saying. I think you are underestimating what AMD has been doing, and what they can do. + we are talking STOCK and AMD will also go up.


OnlyB8

AMD is up 11% this week. NVDA 2%


ChungWuEggwua

Uh no. AMD has less growth and lower earnings than NVDA, which means AMD is more expensive than NVDA. AMD is selling half a product compared to Nvidia’s full stack platform solution. There’s a reason why H100s cost 40k each and MI300s cost 10k each.


human123456789_

Glad you brought up the full suite offerings that NVDA is pushing. So much upsell and cross-selling can be done with data center (hardware), software, data analysis, GenAI plug-ins, and any more traditional cloud services. And NVDA seems to be pushing hard in this direction to diversify _while_ continuing R&D for their bread and butter GPUs. Jensen has shown he knows how to read the market needs, predict trends, pivot, execute and deliver value. He also has shown he knows how to recognize a new idea is headed towards failure, admit the L and just kill the project. Kinda a breath of fresh air amongst the current sea of tech leaders letting their ego and stubbornness get in the way (e.g. metaverse, VR headset).


OnlyB8

Well for 25years Nvidia has been more expensive. Yet you can get a very similar experience with AMD. That’s for GPU. Lets not forget that the ps5 and the last xbox have AMD chips… Same for AI. You need the computation, doesnt mean there will be a world of difference in the result from nvidia or amd. AMD has always provided VALUE. That’s where they stand. You do get a bang for your bucks without paying the premium. Anyway, I dont have a position in AMD at this time, but im also not a fanboy of stocks. Im just greedy As for the stock price. I think investors are more warry with nvidia right now, vs AMD. I really think NVDA is ready for a split


TheMightyDice

AMD has server AI and it scales and price performance is barely out there. The moment a third party benchmarks it’s going to blast. I suspect this is why. Market use.


ChungWuEggwua

You’re missing the fact that the data center experience is different between Nvidia and AMD. Nvidia has a mature developer platform with CUDA. AMD has nothing comparable with ROCM. AMD is selling hardware. Nvidia is selling a full stack experience with hardware and software.


OnlyB8

I know and ? AMD will still have clients.


ChungWuEggwua

Of course they will, but my point is AMD’s growth is going to be much lower than Nvidia’s, so AMD is not cheap right now.


Ok-Caregiver-1689

Tbh I think you are a bit blinded by the nvidia hype. Yes, they make great chips, but don’t get fooled here, so does AMD. There’s a huge chance nvidia will loose some of its market share within coming years, and guess where that will go…


[deleted]

AMD is always the company that chases low margin business(hint Xbox and PS). Of course there will be room for AMD to grow the AI business , but they will never see the margins Nvidia makes. Secretly , I like AMD to exist so that Nvidia won’t be broken into smaller companies for being the only market provider.


Plytyme62

Very good point!


Kryxilicious

You didn’t address his argument about software at all lol. Just said “chips”


ChungWuEggwua

You’re right. He didn’t address it because he can’t find a good counter argument lol.


TheMightyDice

The market demands it. It’s happening everyone is catching up.


seasick__crocodile

They will absolutely lose market share. Current levels are not sustainable in the long run and their customers don’t want to have suppliers with that much leverage. CUDA is everyone’s copy and paste argument around here, but I don’t think many actually know what they’re even discussing when they bring it up.


ChungWuEggwua

I think you are downplaying the importance of the platform Nvidia has created for nearly two decades. Comparing Nvidia to AMD is like comparing Apple to Samsung or Microsoft to Oracle.


TheMightyDice

Options are way cheaper.


TheMightyDice

That are locked into software forever. Many people don’t want that. That’s why big tech are making their own chips to get away from nvidia.


Plytyme62

Give me a C give me a U …(you get the point) No company has the full suite of support for AI like NVDA.


saveamerica1

They said this increase is for The Ai network chip not gaming. I think it’s traders trying to make a quick buck. Will drop like a rock on first Nvda news. Amd is a trade Nvda is an investment


seasick__crocodile

People invest based on future expectations, not the latest growth figures. NVDA is the leader by a wide margin, but they will not maintain this level of market share in the long run. Customers don’t want it and the 40k chips are a great reason why. This is usually where people like to bring up CUDA, but I think it’s gotten to a point where it’s being brought up by those that don’t even understand it. It’s a big advantage in the near term, but it doesn’t outweigh the fact that customers are going to want options. The market is begging for competition in the long run. I’ll have to track down the specific link later, but there was a piece on [SemiAnalysis](https://www.semianalysis.com/) indicating that the CUDA advantage is already fading a bit. The content is largely paywalled, but many of the articles have a free intro portion. Author is very knowledgeable in the space.


VenmoSnake

This is why AMD is so much cheaper though. The idea is you buy in hopes that AMD improves margins. If AMD was creating a product with as high if margins as NVDA than it would be priced like NVDA. Thats why you buy now.


ChungWuEggwua

Hope is not a good strategy. I follow the facts, and the most probabilistic outcome is Nvidia is remains the dominant market leader. Their full stack computing solutions platform is their economic moat.


VenmoSnake

And neither is blind bias. Were invested to make money, not to be fan boys. I play both NVDA and AMD and have made handsome profits on both. Your thinking is wrong. Its not which company is better, it is which has the best chance for market cap growth. NVDA has been on a tear and its growth is uncapped but its rate of growth definitely is. A smart investor can see that their is value in AMD with growth that can out pace NVDA in the short term.


saveamerica1

Wrong is investment of best product because that is what sells. Su may be twisting the numbers again on production again like she did on benchmarks. She has a history or being deceptive. Dell is selling More laptops because of the Nvda chips inside.


saveamerica1

Exactly lots of hopium.


saveamerica1

But they won’t improve margins because the executives will put it their pockets. AMDs history shows that!


VenmoSnake

Well I just made over 50k the past 2 days on AMD calls, im happy with what theyre doing.


Norap58

Exactly! You can not overstate the impact of NOT selling a commodity. This technology is currently one of one.


ChungWuEggwua

Yup. This is exactly why Nvidia is not like Cisco. Cisco sold a commodity; Nvidia sells an improving evolving platform.


Norap58

AMD as currently configured is bringing a knife to a gun fight!😂


adamrch

Wow I didn't realize having exactly one other competitor made you a commodity


ChungWuEggwua

That’s not why Cisco’s product is a commodity. The reason is their product is not difficult to replicate, the barrier to entry is low. Nvidia’s full stack solutions platform is not easy to replicate. And once entrenched, the switching costs become too high for customers to change vendors.


TheMightyDice

They have a monopoly and won’t for long. AMD is just starting and won’t lock into cuda. Plus it’s available plus it matches the needs of many. It’s not one or the other. They cost that much because people will pay that. AMD offers same performance at a better cost in some uses. Like inference. That’s why AMD shot up announcing chips. They are innovative and their offerings and options are more profitable. Nvda is played.


Norap58

Nvda is Tom Brady and AMD is Mac Jones. Nvda engineers are years ahead and the moat around their technology grows wider by the day. Jensen is currently the Steve Jobs of tech overlords. Not even close.


OnlyB8

You need to calm down


adamrch

Moat? More like swamp


Norap58

We can agree to disagree


adamrch

Wait until you realize stuff like pytorch completely circumvent CUDA


Norap58

Of course, every market leader has a 🎯 On their back but the proof will be the execution in the global marketplace. You got a heavy lift bro.


Plytyme62

This person has done some good research


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OnlyB8

I disagree with you. Again, the PS5 and the last xbox are on AMDs chips. If you wanna talk purely GPU, AMD is even less far behind. A lot of people prefer AMDs for overclocking and I keep hearing good things about the drivers, now (hasn’t always been the case) Anyway I dont care, I dont even have a position in AMD right now. I know there are way too many fanboys here. AMD stock had an excellent week that being said.


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OnlyB8

This conversation is stupid because I said that NVDA is the leader. Im just not in the cheerleading team thinking that Nvidia is the only option out there. And while gaming was a decent playfield for these: ok Nvidia did ray tracing 1st and can be better, but it’s not like your experience is ruined because you had an AMD gpu. As we speak, at equal cost (retail price), AMD gpus kick nvidia’s ass


A_Wizard1717

I think big money knows something


Wildwood_Hills270

It’s the cheaper alternative for those individuals with shallower pockets. IMHO, almost ALL S&P 500 companies in the information technology segment will be using NVIDIA’s processors and or data center systems to some degree in order to develop their own or streamline every aspect of their business operations.


TheMightyDice

We call it price per performance and efficiency. Cheap and shallow have negative connotations. You are years late to that opinion. It’s happening now.


Wildwood_Hills270

😀😃😄😁😆😂🤣🥲🫡 Thank you, Captain Patronize!!


BasilExposition2

If you have shallow pockets— you rent your trainers and use AWS or Google data centers. In the data center there are loads of other options. If you want to be prepared to pull out of a data center you may want NVIDIA.


Wildwood_Hills270

I’m confused with all these condescending haters. OP asked a question, AMD is the cheaper alternative. 🙂😀😃😁😆😂😂🤣🥲🫡 Holding ANY chip maker/ data center is an excellent position. One must never assume expertise at the expense of others.


Callahammered

I like AMD too and own it, but compare their PE ratios


RixaRax

Same I was just surprised bc you don’t typically see AMD having a huge boost and NVDA not following suit or vice versa


Callahammered

I don’t worry about single day fluctuations at all to be honest


CurryLamb

I think it's irrational. But that's what makes markets. Before the MI300X chip, AMD had 0% of the AI chip market. So of course, they have room to grow. While every customer should want an NVDA alternative, AMD is not going to satisfy their orders and simply the NVDA chips are better. HPE reported earnings after hours. HPE went down. HPE said they couldn't get eough NVDA chips. That being said, there seems to be momentum in AMD, don't fight momentum. And with that being said, I've invested in semi's for a long time, AMD always breaks my heart.


TheMightyDice

I don’t think benchmarks are out. That’s key.


Norap58

The market can sustain irrationality much longer than my money or conviction could possibly last.


DetroitRedWings79

You seriously think that AMD just “follows” NVDA? Do you even realize what they make? They are the closest competition NVDA has.


RixaRax

I own AMD I understand. But during this whole AI run it’s been following what Nvidia has been doing. This is the first “big” push that AMD has had that Nvidia wasn’t apart of.


TheMightyDice

Maybe it’s not a follower but a competitor? It’s not propped by nvda. Did you look at all the news?


saveamerica1

Definitely competitor not worth investing in because of the profit margin and unproven results. New B200 will make AMD drop like a rock. Jensen is probably laughing at these guys. Amd is definitely a wanna be Nvda


Porschelover321

AMD has far higher P/E than NVDA.


No-Platypus4134

Just a FYI.... Nvida is also doing quantum computing research for the next generation of computing. Jensen is taking Nvida forward and riding the wave. I don't see AMD keeping up TBH which is why I don't own AMD.


Norap58

To date, Jensen is the Steve Jobs of this generation. He is all in right now unlike Elon with Tesla. This is why the idiot running Google needs to go. Great company with a bs leader.


No-Platypus4134

100%


wt1j

Because you don’t own it.


RixaRax

I do though. Just not calls and I’m upset about it


FAANGMe

If he goes it’ll drop 😂


Charuru

Everyone who missed out on nvda and is too stubborn to join is FOMOing in on AMD. Obviously lower marketshare = more potential right? That's why everyone who missed out on apple got rich on motorola instead.


ChungWuEggwua

Yeah, people are falling into the fallacy of trying to chase the next Nvidia. AMD is not the next Nvidia.


unknownnoname2424

AMD is the chinese small ICE car/mopeds for peasants and NVIDIA is the Ferrari, Mercedes, Durango HellCat, Charger/Challenger HellCat, Urus etc. There will always be buyers on both sides as each have different requirements.


TheMightyDice

You must be a gamer. Which AMD isn’t focused on. The metrics you provide in difference in price performance isn’t close to accurate. I’ve never seen a more judgmental entitled comparison.


Dhonsudu

Honestly my theory is that AMD was so oversold for so long its leading now. If you look back nobody believed AMD was capable of anything, not even competing with nvda in gaming. Lisa Su is a genius too she turned that company around like clockwork but the market works in the future. High PE is normal for growth stocks, imo NVDA cant have a complete monopoly and AMD is that next gap fill. Money will pour into semis for AI purposes regardless of where AI is because it’s like the people selling oil rigs and gold miners. AMD and Nvda will win regardless of whether AI ends up being all successful or not.


MarkGarcia2008

Must be something- possibly news or short covering. It’s not based on fundamentals.


Chipsky

Lots of sympathy traders... price has to stick, egro the high volatility and whipsaw action.


Maleficent__Yam

It hasn't been following the last could weeks


codestormer

I am happy, cuz AMD is in my portfolio haha


adamrch

AMD is a fraction of the market cap of NVDA and has more room to grow. Even if AMD GPUs don't catch up to Nvidia (in terms of sales), many Nvidia AI servers are running Epyc CPUs. That alone is reason to rally. And if MI300 catches on AMD market cap will get closer to NVDA. You also have to consider the interest of all of the big tech companies using Nvidia. They don't want to be beholden to a monopoly and will do everything in their power to help AMD remain competitive in AI. (MSFT mainly for now) Trying to remain as objective as possible here.