Why You Should Sell AMD and Buy NVIDIA

Shares of NVIDIA (NVDA) have rallied impressively over the last few weeks thanks to the company’s stellar quarterly results. NVIDIA posted earnings per share of $0.46, $0.21 more than the consensus estimate of $0.25. Revenue for the quarter came in at $1.31 billion, $0.13 billion better than the analyst estimate of $1.18 billion.

Shares of NVIDIA Corporation are up more than 50% so far in 2015, as it is the primary choice for fundamentally all the leading scientific research organizations in the world. And this had direct impression on the quality of products it delivers to the market.

As per third-party reviews, the NVIDIA GeForce GTX 980 Ti offers almost same performance as Advanced Micro Devices’ (AMD) flagship Radeon R9 Fury X.
Still the primary problem for AMD’s Fury X is that NVIDIA GeForce GTX 980 Ti chips can usually be run at considerably faster speeds than what NVIDIA rates them at, which clearly means that many add-in board vendors offer GeForce 980 Ti- grounded graphics cards with a proper generous performance lead over the Fury X.

NVIDIA’s GeForce GTX 980 Ti delivers a supreme 4K and virtual reality experience. With 2816 NVIDIA CUDA cores and 6GB of GDDR5 memory, it provides the horsepower to drive whatever comes next. However, it is also accepted that the Fury X does not have much defoliated area away from its rated specifications.

At present, a Radeon R9 Fury X lowest model is priced at $629, with the highest models costing around $650. Whereas, a factory-overclocked 980 Ti is available for $599 on Newegg.com. NVIDIA also offers a free game with the purchase of GTX 980 Ti.

At this point, it’s very tough to choose the AMD Fury X compared to the very aggressive pricing of NVIDIA’s GeForce GTX 980 Ti. NVIDIA will be leading in the gaming market until and unless AMD reduces its cost.


NVIDIA’s shares have rallied nicely in the recent past, but the stock is still attractively priced. NVIDIA is better positioned than AMD. NVIDIA has gained a lot of market share from AMD and the availability of cheaper graphics cards will further help it gain traction in the market. AMD, on the other hand, is unwilling to reduce its costs and this will hurt the company going forward. For the reasons mentioned above, I think NVIDIA will continue its upward trajectory, whereas AMD’s struggle will likely continue.
Published on Dec 4, 2015
By Yaggyaseni Mittra

Copyrighted 2020. Content published with author's permission.

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