Nvidia’s stock is still a better buy than AMD, though its stock is up 140% over the last twelve months compared to 32% of AMD. One of them is that Nvidia’s operation margins continue to swell to 31.46%, up from 29.90% six months ago. Meanwhile, AMD’s operating margins continue to be in negative territory, hovering in the 6.50-8.00% range—see table. Company 12-month Price Changes Forward PE Operating Margins Nvidia (NVDA) 140% 53.11 31.46% Advanced Micro Devices (AMD) 32% 34.12 -6.49Source: Finance.yahoo.com 11/9/2017Company 12-month Price Changes Forward PE Operating Margins Nvidia (NVDA) 300% 43.36 29.90% Advanced Micro Devices (AMD) 250% 45.62 -7.68Source: Finance.yahoo.com 6/28/2017But the most important reason is that Nvidia has been growing smartest. That’s why Nvidia is still a better buy than AMD, in spite of its strong gains in recent months.
Source: Forbes November 11, 2017 15:11 UTC