#1 AI Stock of 2023 (Not NVDA)
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Most people will go their whole lives without capturing a 1,000% gain. But one Wall Street veteran may have cracked the code. During his career of nearly 50 years, Marc Chaikin was one of the quantitative mind behind some of the most famous investors in history: Paul Tudor Jones, George Soros, Steve Cohen, and Michael Steinhardt. Even the Nasdaq hired him to create three new indices. All because Chaikin built the Wall Street system for detecting 10X stocks. It flashed “buy” on vaccine-makers Novavax (NVAX) and BioNTech (BNTX), months before the pandemic even began. BioNTech (BNTX) quickly surged 2,188%. Novavax (NVAX) shot up 7,612%. It flashed “buy” on EV stock Blink Charging (BLNK), before it jumped 1,433%. And even RIOT Blockchain (RIOT)… right before Bitcoin shot past $60,000… and sent RIOT up 10,090% in less than a year. Since then, Chaikin's gained over 1 million followers – and one of the best reputations in the financial world. His system has pinpointed dozens of stocks that went onto soar 100% to 1,000%, often in less than a year. And today, he's doing it all over again, for the hottest investment trend of 2023: A.I. I just sat down with Chaikin for a “tell-all” interview, where he revealed the name and ticker of his favorite A.I. stock of 2023. His system flashed “buy” on both Nvidia (NVDA) and Meta (META) before their extraordinary runups earlier this year. But he says that's nothing compared what's in store for this “under-the-radar” A.I. stock. He told me, “This company just teamed up with one of the biggest power players in the A.I. industry – but you can still buy it for just one-twelfth the price of Nvidia (NVDA). The time to buy is NOW.” To see Chaikin's full prediction for yourself, simply click here. You'll get this stock's name and ticker symbol, absolutely free.
By Michael Que, InvestorPlace.com
- Advanced Micro Devices (AMD): Nvidia dominates the AI space with 92% market share due to superior software optimization.
- AMD’s success in the CPU market is hampered by declining margins, and stagnant market share.
- Nvidia’s profitability and growth surpass AMD making it a more attractive investment.
Both Advanced Micro Devices (NASDAQ:AMD) stock and Nvidia (NASDAQ:NVDA) have each hit their respective highs in the past year with AMD being up 115% and NVDA 236% over the past year. This has been to due the massive innovation taking place over the past year with the growth of AI.
However, AMD stock does not look like it will break any more price barriers soon. NVDA will only continue to trend upward.
A Closer Look at AMD Stock
Optimism for AI is a major catalyst that’s pumping up the stock. However, this is an area where AMD is the laggard compared to Nvidia.
The key to winning the AI war is not the sheer power of processing power, but the software that will best optimize the hardware. On this front, Nvidia has a massive advantage. It has more software engineers than hardware engineers at its company, and its recent software update made its AI functionality 5x faster.
AMD was caught misleading investors on how it had the fastest GPU when it ran Nvidia GPUs on un-optimized software. Therefore, it’s safe to say that Nvidia has the advantage in AI right now. In addition, data supports the fact that it is the undisputed market leader, seeing as how it holds 92% of the market share.
AMD’s CPU market share is weak
In the past few years, AMD stock made investors optimistic in its penetration in the CPU market. However, we must remember that it’s coming at the expense of Intel, a $183 billion company whose name is synonymous with CPUs.
Even though AMD has overtaken market share, Intel continues to compete fiercely, and observers often describe the two companies as neck to neck.
One company creates a better chip at a cheaper price, and the other soon matches it. We see this as operating margins have continued to decline. In FY 2023 it was only 1.77%, compared to 5.36% the previous year.
For context, its operating margins in the prior years have always stayed above the 10% threshold. In 2021, it made the most progress when it got almost 40% of the CPU market share, since then market share hasn’t grown and has instead fallen to around 36%.
Nvidia’s Dominance
Nvidia beats AMD all around when it comes to profitability and growth projection.
Analysts anticipate a remarkable sales increase of 118.4% to $59 billion in fiscal 2024 and a subsequent 56.5% growth to $92.3 billion in fiscal 2025. NVDA dominates the AI chip market with an 80% market share, expected to generate $54 billion in revenue in the next year. It controls 87% of the GPU market designating AMD as a drop in the bucket.
Valuation
In comparison to NVDA, investors significantly overvalue AMD stock. The business remains vulnerable to environmental shifts, showing a lack of resilience despite a decade of growth.
AMD’s stock surge is largely attributed to AI hype and NVDA’s performance. NVDA has a unique position in the AI revolution, benefiting from its unmatched ecosystem. Customers with high switching costs lead to sustained high profitability. Nvidia Corporation’s current valuation suggests a promising opportunity, with a potential 20% upside.
Ditch AMD for NVDA’s guaranteed returns now and years into the future!
Bill Gates is all about this tiny $2 stock
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