Elnora H. and William B. Quarton Professor of Business Administration and Economics, Coe College, Iowa
AMD on the Rise, 12/12/2023
The NVDA problem continues to bother me. On the one hand, it is pretty clear that investors have changed their view on Nvidia, after the latest great earnings report. Big money is pulling out of Nvidia. I don’t know if they are taking profits or just rebalancing, but there is little doubt that they are getting out. On the other hand, the AI craze has not died down. It makes pulling out of Nvidia look premature.
Now I have the perfect solution. I jumped into AMD. It is a much smaller stock with a much smaller market share of the GPU market. It benefits from the AI boom, but has not yet taken off like NVDA. Because it is much smaller, a small portion of NVDA investors shifting to it can easily propel AMD to a very high level.
Judging by AMD’s performance in the last few days, I would say many institutional investors are doing what I just described.
Addendum: I could not resist switching back to Nvidia on February 9. AMD gave me a good run, but we should always go with the King.
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