Better Buy: Nvidia vs. AMD
Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD) have made a solid recovery on the stock market in 2023 with impressive year-to-date gains of 59% and 22%, respectively, as investors continue to show faith in their long-term prospects.
In fact, shares of these semiconductor companies have headed higher despite them posting poor near-term guidance numbers caused by a weak PC (personal computer) market. While Nvidia's revenue outlook of $6.5 billion for the current quarter would translate into a 21% year-over-year drop, AMD anticipates a 10% decline in first-quarter 2023 revenue to $5.3 billion. But investors have chosen to focus on the gains that these companies are making in their data center businesses, driven by the growing adoption of artificial intelligence (AI) applications and cloud computing. AI applications, in particular, seem to have caught investors' attention as they are likely to drive the demand for data center accelerators that Nvidia and AMD sell.
But which one of these two tech giants is more likely to sustain its stock market momentum? Let's find out.
Source Fool.com
