Better Buy: Advanced Micro Devices vs. Nvidia
Tech stocks have been hit hard in 2022, with the NASDAQ-100 Technology Sector index down 33% year to date. Multiple companies have taken significant hits to their stocks, with Nvidia (NASDAQ: NVDA) down 54% and Advanced Micro Devices (NASDAQ: AMD) off 45% in the same period. As key players in the computer graphics market, these companies are often stacked against each other, so it stands to reason that investors might question which is the better buy.
Tech stocks have fallen out of favor in 2022 as rising inflation and fears of a recession slowed consumer spending. However, they won't be down forever, making them excellent stocks to buy and hold. Although Nvidia and AMD are both attractive stocks for investors looking to hold long-term, one of them is superior. Let's assess.
Nvidia's 29 years of business have built it into a leader in graphics processing units (GPUs), used in gaming, cryptocurrency mining, professional applications, and more. The company also designs chip systems for automotive and robotic products. Nvidia flourished throughout the pandemic, with its stock rising 541% between March 2020 and November 2021 -- when it reached an all-time high. However, the tech stock has lost 58% since its November high as investors lose faith in the company's stability.
Source Fool.com
