Advanced Micro Devices (AMD)
- $32.0B market cap
- no dividend
- $5.9B revenue
- -13% revenue growth
- $0.01B operating cash flow
- -$0.06B free cash flow
NVIDIA (NVDA)
- $98.2B market cap
- 0.4% dividend yield
- $10.7B revenue
- -31% revenue growth
- $3.0B operating cash flow
- $1.4B free cash flow
Revisiting the catalysts for NVIDIA to outperform the market for the foreseeable future:
- NVIDIA is at the heart of technologies shaping our future: deep learning, artificial intelligence, datacenters/cloud computing, and automated driving.
- Within the semiconductor industry, Intel is the best-in-class manufacturer, while NVIDIA is the best-in-class designer. If someone wants the most powerful chips in the world, they choose NVIDIA.
- NVIDIA's new chip (Turing) being so much better than their old chip (Pascal) is a high-quality problem. The inventory issues causing so much grief with investors will soon be in the past.
Whereas Intel and NVIDIA have larger market caps as mentioned above, AMD is substantially smaller. It is arguably the only significant competitor for either company, and is inarguably gaining technological ground on both:
- In the cloud, AMD has struck deals with Amazon and Google.
- In gaming, AMD will the chip provider for Microsoft's newest XBOX.
- In desktops, AMD will be the first to sell 7mm CPUs and GPUs, which promise increased capabilities and lower power consumption.
Restating my beliefs: NVIDIA deserves the current market cap of Intel (120% upside), and AMD deserves the current market cap of NVIDIA (206% upside).
Here's my current portfolio (buy and hold). As always, I believe in all of these stocks - until I sell them.
Amazon (AMZN) 15.21%
Apple (AAPL) 12.54%
NVIDIA (NVDA) 12.40%
Tesla (TSLA) 9.01%
Microsoft (MSFT) 8.36%
Alphabet (GOOGL) 6.33%
Facebook (FB) 4.38%
Intuitive Surgical (ISRG) 3.76%
Adobe (ADBE) 2.87%
Visa (V) 2.49%
UnitedHealth Group (UNH) 2.19%
Nike (NKE) 2.18%
Salesforce (CRM) 2.08%
Starbucks (SBUX) 2.06%
Intel (INTC) 1.98%
Waste Management (WM) 1.76%
Costco Wholesale (COST) 1.44%
Comcast (CMCSA) 1.41%
BlackRock (BLK) 1.19%
American Water Works (AWK) 1.10%
Union Pacific (UNP) 1.02%
Norfolk Southern (NSC) 0.93%
Autodesk (ADSK) 0.90%
CSX (CSX) 0.85%
Advanced Micro Devices (AMD) 0.77%
Canadian National Railway (CNI) 0.42%
Kansas City Southern (KSU) 0.35%
