NVDA vs. AMD in the Battle for AI Dominance

It was 2011. After months of working the night shift at the Valdosta State University library, I had my eyes on a new computer.

My friends were getting back into World of Warcraft, and my Dell laptop sounded like a jet engine when I tried to run anything more demanding than Microsoft Word.

So I started picking out parts. I had settled on a decent processor, power supply, RAM and hard drive.

But I had to answer one huge question: Should I go with an Nvidia or Advanced Micro Devices graphics card?

At the time, Nvidia was the market leader, with around 60% of the graphics processing unit (GPU) market claimed.

After reading pages and pages of tech reviews and online debates, I committed to AMD. The company was producing fast GPUs and cutting into Nvidia’s dominance. It held claim to the other 40% of the market.

Within a couple of weeks, I was online with my buddies, raiding dungeons and absolutely wrecking my sleep schedule with late-night gaming sessions after shifts at the library.

Good times…

I bring this up because, while Nvidia Corp. (Nasdaq: NVDA) and Advanced Micro Devices Inc. (Nasdaq: AMD) are still competing in the GPU space, these two tech giants are now embroiled in a different battle for market dominance.

And it’s in a trend that’s making waves in the stock market…

NVDA’s and AMD’s New Battleground

You know I’m talking about AI!

And how could I not after NVDA’s earnings report that sent markets into a frenzy on Thursday?

The company reported 265% revenue growth in its most recent quarter compared to a year ago. And Nvidia CEO Jensen Huang is bullish for the future, stating that “accelerated computing and generative AI have hit the tipping point” in a statement.

It was enough to send NVDA shares 15% higher to a fresh record-high Thursday morning!

And with a “Bullish” 71 out of 100 in Adam O’Dell’s Green Zone Power Ratings system, NVDA stock should continue to outperform from here.

NVDA’s Green Zone Power Ratings in February 2024.

For more on NVDA’s ratings and blockbuster earnings report, click here.

Nvidia is dominating the AI space. It has established itself as the leading chipmaker for generative AI.

What does that mean for AMD? Let’s see what Green Zone Power Ratings says.

Things don’t look as hot for AMD in our system. But it’s tough to write off any stock that’s part of this ongoing AI mega trend.

AMD rates a “Neutral” 54 out of 100 in Green Zone Power Ratings.

AMD’s Green Zone Power Ratings in February 2024.

Stocks that rate “Neutral” are set to perform in line with the broader market. In a bull market, that’s just fine.

Nvidia’s strong earnings and the AI effect are playing out in similar stocks. AMD shares jumped as much as 10% Thursday morning following NVDA’s earnings beat.

Things to consider with AMD are its lower ratings on Volatility (46) and Value (3). You’re paying a premium for AI and tech growth, and this stock has had a run of choppy trading over the last year.

AMD rates a 66 on Quality — which measures the financial stability of a company based on debt, returns on assets, equity and investment, as well as cash flows and margins. NVDA has an edge here with a perfect 100 rating on the factor after more than a year of being the top dog in AI.

Faced with the same choice from 13 years ago, albeit with a different goal of market-beating gains instead of smooth gameplay while slaying orcs, I’d have to follow Green Zone Power Ratings (and the money) into NVDA stock.

What About Momentum?

I can’t close out today without touching on the incredible momentum both of these stocks have right now.

NVDA rates a 94 on the Momentum factor in Adam’s system, and AMD boasts a 97. And it’s translated into incredible gains over the last 12 months. AMD is up 137% over the last year, and NVDA is running away with a 275% gain over the same time.

That shows exactly why these stocks rate so well on the Momentum factor.

Of course, momentum is also a big part of Adam’s “Money Code” — an AI-based system he developed to find these stocks moving higher at a rapid pace.

He’s targeting similar triple-digit gains — in just a few days — by tapping into a $7 trillion market outside of stocks and bonds that is currently dominated by Wall Street’s elite.

If you want to get in on the action before his next trade on Monday, February 26, click here.

That’s it for me this week!

Until next time,