Advanced Micro Devices has significant digital semiconductor expertise and is well positioned to prosper from favorable trends in data centers and artificial intelligence. We consider AMD to be one of two notable firms in graphics processing units, which are especially suited for AI. The company may play second fiddle to Nvidia in AI GPUs, but its GPU expertise should become increasingly valuable—and lucrative—in the years ahead.
AI offers a massive opportunity to GPU makers, and while AMD lags industry leader Nvidia, we see plenty of room in the AI market for AMD.
AMD will need to improve its software capabilities to make a dent in Nvidia’s AI dominance, as Nvidia is strong in not only GPUs but also associated AI software tools.
|
Metric
|
AMD
|
NVDA
|
INTC
|
|---|---|---|---|
Price/Earnings (Normalized) | 89.60 | 31.14 | 94.44 |
Price/Book Value | 12.53 | 23.02 | 5.93 |
Price/Sales | 20.61 | 17.58 | 8.86 |
Price/Cash Flow | 72.27 | 30.41 | 27.88 |
|
Metric
|
AMD
|
NVDA
|
INTC
|
|---|---|---|---|
Quick Ratio | 1.69 | 2.92 | 0.95 |
Current Ratio | 2.61 | 4.59 | 1.60 |
Interest Coverage | 50.86 | 492.39 | −8.63 |
|
Metric
|
AMD
|
NVDA
|
INTC
|
|---|---|---|---|
Return on Assets (Normalized) | 10.30% | 78.47% | 1.12% |
Return on Equity (Normalized) | 12.83% | 106.66% | 2.20% |
Return on Invested Capital (Normalized) | 11.99% | 95.82% | 1.36% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| NVIDIA Corp
NVDA
| LOCK|#@Wz%jLc | LOCK|P?R | $5T | |||
| Taiwan Semiconductor Manufacturing Co Ltd ADR
TSM
| LOCK|YG<NQ!D | LOCK|dW | $2T | |||
| Broadcom Inc
AVGO
| LOCK|@<f&tzC | LOCK|&B$ | $2T | |||
| Micron Technology Inc
MU
| LOCK|rH&dXV | LOCK|G%F | $1T | |||
| SK hynix Inc ADR
SKHY
| LOCK|S^$$#n$ | LOCK|DZ | $953B | |||
| Intel Corp
INTC
| LOCK|J>QSyn | LOCK|$q | $544B | |||
| ARM Holdings PLC ADR
ARM
| LOCK|Z@yVVH | LOCK|?B | $283B | |||
| Texas Instruments Inc
TXN
| LOCK|&%J#!$< | LOCK|HYP | $245B | |||
| Marvell Technology Inc
MRVL
| LOCK|S$R<^&y& | LOCK|#vf% | $212B |
United States