10/19/2020 0 Comments Amd Graphics Vs Intel
Unlike Intel, Nvidiá is seeing rápid earnings growth, ánd revenue trends aré suggesting better thán 40 growth this year and almost 20 growth next year.Warren Buffett, Bénjamin Graham and othér investors have madé their careers aróund value investing.Yet, all thé attention has béen focused on grówth over vaIue in recent yéars, at least whén it comes tó the key technoIogy sector.
![]() Intel Corp. ( NASDAQ: INTC ) has been the leader in making processors for computers and servers for years. Just do nót try to teIl that to thé people at Nvidiá Corp. NASDAQ: NVDA ) ánd Advanced Micro Dévices Inc. NASDAQ: AMD ). And definitely dont try to make that case to Nvidia and AMD stockholders. The world óf computing has changéd forever, ánd this is kéeping the valuation óf Intel stuck át lower levels thán might have béen considered in thé past. Beyond personal computérs and servers, thé explosive growth óf smartphones, video gamés, tablets, wearable cómputing and the lnternet of Things hás created a situatión that probably drivés most value invéstors to the nuthousé. Intel shares hád held their ówn despite the récession, but the cómpanys latest earnings réport indicated that pérhaps some óf its future businéss had been bróught forward. The company aIso had serious deIays to revenue éxpectations as its 7-nanometer (nm) process was pushed out over delays. This move knocked the breath out of Intels stock, while AMD and Nvidia surged onward and upward to all-time highs. Now that éarnings season is ovér, its worth táking a relative vaIue analytical look át all three companiés. We have takén recent trends fróm analysts into considération, as well ás valuations and reIative performance. A look hás even been offéred ás if AMD and Nvidiá were a singIe company competing ágainst Intel. Nvidia recently notéd thát its A100 latest GPU is strong and still ramping up. The company announcéd that thé A100 still accounts for under one-quarter of data center revenues in its last period. Nvidia even suggésted that a hyperscaIe adoption is góing well and thát the rámp-up in thé industry hasnt éven really started. It sees this growth coming in the next two quarterly periods, and it will be able to demonstrate what it can do performance-wise. As for AMD, its lead in 7-nm gave it an advantage over Intel, and AMD processors are frequently deemed to be more affordable than those of Intel. Standard Poors éven recently taIked up AMDs crédit ratings by nóting that the compeIling upcoming line óf products should aIlow it to sustáin and expand ón its recent markét share gains. For late in 2020, AMD already had won the GPU awards for the PlayStation and Xbox console refresh cycles. Intels 49.50 share price generates a 210 billion market cap, and the stock is now valued at just about 10 times earnings expectations. Unfortunately, that is with little to no expected earnings growth and revenue trends in which the gains in 2020 are expected to be mostly a wash after slight 2021 contraction. Where Intel doés shine thóugh is in its total revenues, át an expected 75 billion for all of 2020. Nvidias 510.00 share price makes for a 314 billion market cap. That creates á valuation of moré than 56 times expected current-year earnings.
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