AMD Is Trading at 97 Times Forward Earnings While Nvidia Trades at 21 Times -- Someone's Valuation Model Is Wrong. Here's Who I Think It Is.
Wall Street could still be underestimating Nvidia and overestimating AMD.
Overview
Nvidia (NASDAQ: NVDA) and AMD (NASDAQ: AMD) are the two largest producers of discrete GPUs. They both produce data center GPUs for the booming AI market.
However, Nvidia often attracts more attention than AMD because it controls more than 90% of the discrete GPU market. AMD, which tries to compete against Nvidia with its cheaper chips, only holds a single-digit share. Nvidia also generates most of its revenue from its data center GPUs, but AMD still sells x86 CPUs for the slower-growth PC market.
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Originally published at www.fool.com.
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