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Why Nvidia and Not AMD: 30 seconds read (everyone was asking) Nvidia Since October 2021: - Nvidia Price went from $350 to $650 (x1.85) but there is much more r
by stockstobuynow 3y ago
Why Nvidia and Not AMD: 30 seconds read (everyone was asking)
Nvidia Since October 2021:
- Nvidia Price went from $350 to $650 (x1.85) but there is much more room for growth...
- Nvidia Net Income went from $2.6Bn to $9.2Bn (x3.5!!)
AMD Since October 2021:
- AMD Price did x1.14
- AMD Net Income went from $1Bnto $350Mn (-70%!!)
Also - AMD PE is sooo high:
Correct me if I'm wrong: People think AMD is a better option because:
1) Misinformation: They look only at prices, they dont look at earnings and income, and think ‘Nvidia price went up (so high) I better buy AMD’. My friend: look at Net Income and Earning per Share.
2) Psychology: Most people look only at the value of the share price, they prefer to see $1 rather than $1,000, buy the penny stocks!! Right?
No! They don’t understand what matters is company valuation, if there is a share split the price will ‘fall’ and then you see positive returns because people find it ‘cheaper’. To me AMD is a meme stock (almost).
Price is only valuation / number of shares released, the price of the share itself means nothing…
Ask me why Nvidia and not ARM, Broadcom, Texas Instrument or Intel...
Quick disclosure: I still own Nvidia shares, and had calls bought at $50 (already expired), and have some AMD too...