is-nvidia-better-than-amd-1605707390374.jpg
Source: nvidia

Which Semiconductor Stock Is Better — Nvidia or AMD?

By

Updated

Nvidia is one of the hottest chip stocks now. The others are Advanced Micro Devices and AMD stock. Nvidia stock has gained about 130 percent in 2020 to trade at $540 apiece. Meanwhile, AMD stock has gained about 80 percent in 2020 to trade at $83. Is Nvidia stock better than AMD stock?

Article continues below advertisement

Nvidia stock is listed on the Nasdaq exchange and trades under “NVDA” ticker symbol. Apart from AMD, what are the other stocks like Nvidia out there for you? Are the other stocks like Nvidia better than Nvidia stock?

jensen-huang-1605716948765.jpg
Source: getty images

Nvidia CEO Jensen Huang

Article continues below advertisement

Is Nvidia an American company?

Nvidia is an American multinational semiconductor company. It was incorporated in Delaware and headquartered in Santa Clara, California. Nvidia makes chips used in a range of products from gaming consoles to vehicles. The company is best known for its graphics processing units (GPUs) for gaming devices and professional computers. Nvidia’s major competitors in GPU chips market are AMD and Intel. 

What is Nvidia CEO Jensen Huang’s net worth?

Nvidia CEO Jensen Huang’s net worth is $12 billion. The Taiwanese-American billionaire business executive wears a tattoo of Nvidia’s logo on his arm. Huang got the tattoo to celebrate Nvidia stock price breaking $100 milestone. The Nvidia CEO is best known for his signature leather jacket. 

Article continues below advertisement

Is Nvidia better than AMD?

Nvidia and AMD are the leading suppliers of GPU chips. In the gaming console market, Nvidia GPU chips power Nintendo’s Switch line of consoles. Meanwhile, AMD supplies GPU chips for Microsoft’s Xbox and Sony’s PlayStation consoles. Nvidia has been doing better than AMD in the GPU market, claiming nearly 60 percent market share compared to AMD’s 26 percent. Nvidia GPU chips are even more popular in PC market, where the company has 80 percent market share against AMD’s 20 percent.

Article continues below advertisement

For income investors, Nvidia stock may be better than AMD stock. Nvidia shares its profits with shareholders through dividend distribution. The company has been distributing cash dividend consistently since at least 2012. On other hand, AMD currently doesn’t pay dividends.

Is Nvidia better than Intel?

Many investors like comparing Nvidia with not just AMD but also Intel. Nvidia and Intel are battling for control of the data center chips market. Intel currently dominates the data center market but Nvidia aims to stopple it in the coming years. After buying Mellanox to bolster its data center chips business, Nvidia seeks to further enhance the business with its acquisition of SoftBank’s ARM Holding.

Article continues below advertisement

In terms of revenue growth, Nvidia has been doing better than competitor Intel. Nvidia’s soaring fortunes have seen its market cap top that of Intel, making it the most valuable U.S. chipmaker. In terms of dividend, however, Intel stock has a better dividend yield than Nvidia stock. 

Article continues below advertisement

Will Nvidia stock split?

Nvidia has split its stock four times since going public. Nvidia’s first stock split took place in 2000, when the chipmaker implemented a 2-for-1 stock split. The latest Nvidia stock split took place in 2007, when the company implemented a 3-for-1 stock split. 

Companies split their stocks to make them more affordable to small investors, as Tesla and Apple did and got praise from stock-split advocate Jim Cramer. As Nvidia’s stock has soared, many have wondered if Nvidia will split its stock. However, Nvidia currently hasn’t announced any plans for another round of stock split. 

How are stocks like Nvidia performing today?

Nvidia stock popped up about 0.40 percent to $539 in premarket trading today. The other semiconductor stocks like Nvidia rising in the premarket today are AMD, Intel, Broadcom, and Qualcomm. Beyond semiconductor industry, investors can shop for growth stocks like Nvidia in industries like ecommerce, where stocks like Amazon and Shopify stand out.

Advertisement

More From Market Realist