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Nvidia’s Valuation Gap With AMD Just Got Bigger
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That sounds bad, but the sell off has pushed Nvidia’s valuation to its lowest since 2019, even as the company posted a record quarter.
The gap between a cheaper stock and a business still growing fast is what makes Nvidia worth a close look right now.
Its new Vera server CPU targets a $200 billion market, with $20 billion in Vera revenue expected this fiscal year alone despite only recently shipping as a standalone product.
Short sellers are more skeptical of AMD, with 2.45% of its float sold short against 1.39% for Nvidia.
Any softening in orders, or fresh detail on the OpenAI financing arrangement, would give skeptics more to work with.