Do you think AMD can reach 1 Trillion Market Cap
Nvidia recently reached 1 trillion market cap.it has dropped in value since then but the stock did manage to reach there.
My question is do you think the other semiconductor company AMD which is also a successful and profitable company can also reach those levels eventually?
i know there are other semiconductors companies besides AMD such as intel that can also potentially reach 1 Trillion Market Cap and if you think other semiconductors companies are more likely to reach 1 Trillion Market Cap first write that in the comments. $Advanced Micro Devices(AMD.US$ $NVIDIA(NVDA.US$
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The Value Investor : $NVIDIA (NVDA.US)$ shouldn’t even have a $1 trillion market cap. it is not a sustainable price, it’s just going to plummet. The amount of money NVDA makes is far too little to justify its market cap. If NVDA profit stopped growing and stayed constant. It would take the company over 200 years to make enough profit to equal its market cap. That’s basically what the company’s P/E is telling you. For a mega cap high growth company, a P/E of 30 is already considered generous, 200+ is ridiculous. If you look historically at companies like this, they all underperform. They’re stock price growth far exceeds the company’s actual money coming in. Look at literally every tech stock that survived the internet bubble through 2000-2001. $Intel (INTC.US)$ $Cisco (CSCO.US)$ still haven’t passed their all time highs. $Microsoft (MSFT.US)$ underperformed the market if you bought it at its peak. We already saw it with Tesla, we saw it with Palantir, and we already saw it with much of the hype stocks. At some point overvalued stocks will plummet because their evaluation is simply unsustainable. You may as well just buy t-notes or use a saving account. A 4-5% no risk yield is better than a 200 P/E company.
Biden2024 : Nvidia is the leading GPU company in the AI space, hence the highly optimistic valuation. AMD and Intel put greater focus on their CPUs and aren’t even close to competing with Nvidia in the AI space.
Even AMD’s GPUs can’t compete because Nvidia has its own proprietary GPU language and a whole bunch of models and frameworks that were designed with AI in mind. AMD on the other hand, has mostly focused on developing its GPUs for gaming and 3D.
Ask anyone who works with AI and they will tell you Nvidia GPUs are their go-to choice.