On Nvidia

https://discussion.fool.com/more-flavor-on-amd-miss-it-is-crypto…

This thread talks about what caused the AMD miss. {Hint} It is simply continued good news for Nvidia, and AMD’s issues have nothing to do with Nvidia.

Further, none of this was unknown or a surprise. I am flabbergasted the market got it so wrong!

As for Nvidia, (1) their new chips were launched in the peak of AMD’s quarter, (2) with the launch of their new chips their old premium chips (which already are better than AMD’s latest chips) prices were cut, making the worn out old AMD chips even less enticing, (3) the launch of the new chips put on hold sales that may have otherwise happened as buyers waited for the new chips, (4) the launch of new chips further made the AMD chips less exciting to buy, leaving AMD with no real competitive chips in the gaming market, particularly in the high end extremely profitable part of the market.

AMD also does not have the AI business that Nvidia has in so many different areas. I did a search. AWS uses AMD only for a single graphics application. Meanwhile on their instruction page for AI on AWS the only options given are Nvidia GPUs…yes a world wide monopoly similar to what Intel once enjoyed and still largely enjoys.

So if the market takes Nvidia further down on this, well you can read another thread on NPI that I wrote in response to what if the gaming market is going down (not a chance). The only issues Nvidia may have is if (1) the fab going down issue hits their ability to bring chips to market (that was an August issue), or (2) if the tariff issues had a material effect on their business (AMD appears to have not had any issue with tariffs).

Anyways, the link above is to a short thread putting succinctly together what caused AMD’s miss and dramatic Pivotal like crash (but worse) after hours. More detailed analysis is on a another thread or two on NPI if interested. But this is the gist along with the link for what one may need to know that is relevant to Nvidia as an investment.

Tinker

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Thanks Tinker. NVDA is down about 35% from its 52 week high, which is just nuts. I had a feeling today was a reaction to AMD’s miss, which if true, is a big mistake by the market.

bjurasz

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I am surprised it took this long. GPU prices peaked in February and not long afterward it was possible to find them in stock again. This had to have affected NVDA to sone degree. But their data center and AI revenue growth is so strong it has to make up for it. Especially going forward.

Once again AMD proves it’s the cigar butt of processors.

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Hey for the first time I bought NVDA on the sell off today and will add hopefully tomorrow at the open.

Agreed that AMDs weakness is NVDAs probable strength.

Chris

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At about 29x trailing earnigs, NVDA is looking pretty darned attractive to me.

Don

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NVDA is down about 35% from its 52 week high, which is just nuts.

Is it?

https://invest.kleinnet.com/bmw1/stats16/NVDA.html

My comments at NPI:

https://discussion.fool.com/price-is-well-below-the-200-d-ma-wit…

Denny Schlesinger

4 Likes