While AMD stock isn't cheap, it trades at a substantially lower valuation than its rival. It trades at a 32 P/E ratio compared with Nvidia, which sells for 44 times earnings. Despite that drop, AMD still maintains a lower valuation than Nvidia. Analyst Report: NVIDIA Corporation Nvidia is the top designer of discrete graphics processing units that enhance the experience on computing platforms. It lost more than one-fourth of its value over the last 12 months, but it did not fall as far as Nvidia. That, along with a generalized sell-off in tech stocks, may have weighed on AMD stock. At just over $1.8 billion for the first half of the year, it rose by only 6%. Also, the acquisitions of Xilinx and Pensando slowed free cash flow growth.
AMD slightly reduced its tax burden and held the line on cost of sales and operating expense growth to generate a higher non-GAAP profit.Īdmittedly, the company expects some modest slowing as it forecasts revenue growth of 60% for 2022. Over the same time frame, non-GAAP (adjusted) net income came in at $3.3 billion, rising 130%.
In the first half of the year, AMD reported $12.4 billion in revenue, 70% more than in the same period in 2021. Not surprisingly, these successes boosted the top and bottom lines considerably. According to Omdia, AMD now claims 23% of that market, up from 16% one year ago. Additionally, it continues to gain traction in the data center market. In late September, AMD will release its 5-nanometer chip, the Ryzen 7000. Likewise, it showed tremendous strength in CPUs after lagging longtime rival Intel for decades.
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