Two Big Differences Between AMD & NVDA
I was digging deep into a lot of tech stocks on my watch lists and came across what I think are two big differences that separate AMD and NVDA from a margins perspective and a management approach.
Obviously, at the moment NVDA has superior technology and the current story for AMD's expected rise (an inevitable rise in the eyes of most) is that they'll steal future market share from NVDA. That they'll close the gap and capture billions of dollars worth of market share. Well, that might eventually happen, but I couldn't ignore these two differences during my research.
The first is margins. NVDA is rocking an astounding 42% profit margin and 57% operating margin. AMD on the other hand is looking at an abysmal .9% profit margin and 4% operating margins. Furthermore, when it comes to management, NVDA is sitting at 27% of a return on assets and 69% return on equity while AMD posts .08% return on assets and .08% return in equity. Thats an insane gap in my eyes.
Speaking to management there was another insane difference. AMD's president rakes home 6 million a year while the next highest paid person is making just 2 million. NVDA's CEO is making 1.6 million and the second highest paid employee makes 990k. That to me looks like greedy president on the AMD side versus a company that values it's second tier employees in NVDA $Advanced Micro Devices(AMD.US$ $NVIDIA(NVDA.US$
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STD0313 : remember NVIDIA has enjoyed first mover rights for a while now. I see a company that abandon what made their Name in the first place.....solid GPU for the AI profits. AMD across the board has delivered faster cleaner low, mid and mid to high lvl GPUs. NVIDIA has produced such overpriced flops with it 40X0 offerings.
Every monitor has AMD sync built in.....I mean all of them. And due to AMDs position as a CPU and GPU creator leave them well positioned in the Home PC laptop universe.