AMD: Not Expensive – Buy It! But I Still Prefer Nvidia.

Ladies and gentlemen, let me tell you something – AMD is not expensive! In fact, it’s a steal! But before you rush to buy, let me give you the full picture. AMD has had an incredible year, with record revenues and strong earnings growth. But when it comes to the tech giants, Nvidia still reigns supreme. Let’s dive in!



First things first, let’s talk about the numbers. AMD’s fourth quarter revenue was a record $7.7 billion, up 24% year-over-year. That’s a massive jump! Their gross margin was 51% on a GAAP basis and 54% on a non-GAAP basis. Operating income was $871 million on a GAAP basis and a whopping $2.0 billion on a non-GAAP basis. Net income was $482 million on a GAAP basis and $1.8 billion on a non-GAAP basis. Diluted earnings per share was $0.29 on a GAAP basis and $1.09 on a non-GAAP basis. These numbers are impressive, but let’s not forget about Nvidia.

Nvidia has been crushing it in the gaming and data center segments. Their RTX 4090 is a beast in 4K and light tracing games, outperforming AMD’s RX 7900 XTX. Nvidia’s revenue from its data center segment was $3.9 billion in the fourth quarter of 2024, up 69% year-over-year. This is driven by strong demand for their AI and HPC solutions. Nvidia’s market share in the discrete GPU market was 75% in the fourth quarter of 2024, compared to AMD’s 25%. That’s a huge difference!

Now, let’s talk about the segments. AMD’s Data Center segment revenue in the fourth quarter of 2024 was a record $3.9 billion, up 69% year-over-year. This is primarily driven by the strong ramp of AMD Instinct™ GPU shipments and growth in AMD EPYC™ CPU sales. Their Client segment revenue was a record $2.3 billion, up 58% year-over-year, driven by strong demand for AMD Ryzen™ processors. However, their Gaming segment revenue was $563 million, down 59% year-over-year, primarily due to a decrease in semi-custom revenue. Their Embedded segment revenue was $923 million, down 13% year-over-year, as end market demand continues to be mixed.



AMD is investing aggressively in AI and innovation. They’ve partnered with IBM, Vultr, and Aleph Alpha to deliver highly performant AI infrastructure at scale. This is a smart move, as AI is the future. But Nvidia is already there. They’ve been the go-to choice for AI and deep learning applications for years. Their CUDA architecture and Tesla GPUs are the industry standard.

So, should you buy AMD? Yes, it’s not expensive and it has strong growth potential. But if you’re looking for the best of the best, Nvidia is still the way to go. They have the performance, the market share, and the AI dominance. AMD is a great buy, but Nvidia is the king of the hill. You need to own both, but if you can only choose one, go with Nvidia. It’s a no-brainer!

BOO-YAH! This is the tech battle of the century, and both AMD and Nvidia are fighting for the top spot. But for now, Nvidia is the champ. Don’t miss out on this opportunity to own a piece of the tech revolution!