NVIDIA Has Trumped AMD yet Again

As my readers know, I have been extremely bearish on Advanced Micro Devices (AMD) for a long period of time now. I have always advised investors to buy NVIDIA (NVDA) and sell Advanced Micro Devices, and the former has seen its share price go up almost 40% since hitting YTD lows in February.

My take on both the companies is still the same. I expect NVIDIA to continue dominating as the arrival of its Pascal architecture should further fortify its position as the market leader.

NVIDIA’s Pascal architecture

Advanced Micro Devices was down considerably in 2015, whereas NVIDIA performed very well in the reference time period.
 AMD is also off to an awful start this year as well. AMD lost almost every battle against NVIDIA and Intel previous year in the GPU and CPU segment and I expect this trend to continue.

Recently, NVIDIA launched its new GP100 graphics chip based on Pascal architecture. The company claims that this new chip will deliver twice the performance of its formerly launched flagship products. I think it is as clear as day that Pascal architecture will help the company to maintain its leading position in the graphics cards segment, creating more troubles for AMD in the approaching quarters.

According to NVIDIA, with a surface area of 610 mm2, the GP100 is the largest FinFET GPU ever manufactured. Almost twice the number of transistors is fabricated on the GP100 as compared to its previous model GP200. Despite the use of approximately 15.3 billion transistors in GP100, the chip has been made very power efficient by using TMCS’s 16 nm FinFET process.

NVIDIA’s GP100 is not only upgraded in terms of process, but it also comprises noteworthy architectural changes. The use of High Bandwidth Memory 2 in GP100 offers the most significant upgrade and is more than twice the bandwidth memory used in GM200.

On the other hand, AMD screened its upcoming Polaris architecture at CES, but the majority of visitors were not amazed by knowing architectural details or performance specifications. Formerly, AMD told that Polaris architecture will be more efficient as compared to previous architecture, but it is primarily driven by the modification from 28 nm process to the 14 nm process.

Until the Polaris architecture is launched, it is hard to say how Polaris will stand against Pascal. However, keeping in mind NVIDIA’s specification improvements for the GP100, it is highly probable that AMD will not be able to beat the GP100 in the standard gaming benchmarks once chips of both the companies are available in the market for customers.


NVIDIA has outsmarted AMD multiple times in the past, and it looks like the company has done it again. The Pascal architecture is hands down better than AMD’s Polaris. I expect AMD to give up more market share to NVIDIA, which is why I think investors should hold onto their shares whilst staying far away from AMD.
Published on Apr 15, 2016
By Akshansh Gandhi

Copyrighted 2016. Content published with author's permission.

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