AMD and Nvidia (NVDA) have many similarities. It also has stark differences. Valuation is the biggest
difference that separates the two. This gives AMD the better buy compared to Nvidia.
AMD recently refreshed its CPU product. It re-asserted its crown title of the fastest desktop chip on the
market. Intel (INTC) will need to refresh Alder Lake and release Raptor Lake. For now, investors may
count on AMD’s CPU that runs at over 5 GHz to spur upgrades.
AMD’s price range of $299 - $799 (US dollars) may hurt sales. Customers are cash-strapped. Amid
inflation, they will wait for AMD to discount Zen 3 processors. Prices in the below $299 level are easier
to budget for the price-sensitive consumer.
AMD’s CEO Lisa Su hinted at the Zen release that it will have a refreshed graphics card. The next GPUs
might use less power, run faster, and cost less. The market is already discounting the RX 6000 cards.
Nvidia has a few headwinds. First, its RTX 3000 GPUs are in excess supply. The company will aggressively
market the highest 3080 and 3080Ti, plus 3090 cards, to maximize profit margins. As it works through
excess supply, it will release the 4090Ti for $2,000 or less next.
