Better Buy After the Chip Sell-Off: Nvidia or AMD?
The recent rout knocked down both AI-chip leaders -- but only one looks like the better value now.
Better Buy After the Chip Sell-Off: Nvidia or AMD?
Overview
The sell-off in semiconductor stocks has been brutal. An artificial intelligence (AI) chip forecast from Broadcom in early June that was lower than expected set off a rout that erased more than $1 trillion in chip-stock value in a single session, and the selling has flared up again since. Two of the biggest names caught in it are AI chip leader Nvidia (NASDAQ: NVDA) and its closest challenger, Advanced Micro Devices (NASDAQ: AMD).
Both stocks have pulled back. As of this writing, Nvidia trades around $199, about 16% below its 52-week high. AMD, at about $520, has held up better and sits within roughly 8% of its own high.
Details
For investors looking to buy the dip on chip stocks, this is a good place to look. But which is the better buy after the sell-off? It is tempting to assume AMD -- the smaller company that should, in theory, grow faster off a lower base. But the latest numbers tell a different story.
Source
Originally published at www.fool.com.
