Analysts had been expecting earnings of $1.03 per share on $6.53 billion in revenue.
In Q2, AMD reported adjusted earnings of $1.05 per share on $6.55 billion in revenue. On that note, reviewing AMD’s and NVIDIA’s earnings results is very revealing. Deloitte sees the trend line of semiconductor sales as “steeper than ever before as we enter a period of robust secular growth.” As a result, there should be plenty of sales available to the chipmakers that take the necessary sales to attract them. The firm also estimates that chip shortages during the pandemic likely cost more than $500 billion in lost sales, including $210 billion in lost auto sales. Deloitte estimates that the global semiconductor industry will be worth about $600 billion this year. Many industries were put on hold due to the widespread shortages of semiconductors. The pandemic opened a lot of people’s eyes to the importance of computer chips. However, there are other effects to consider when looking at AMD and NVIDIA. and design their own chips, they contract third-party companies like Samsung ( GB: SMSN) and TSMC ( TSM) to manufacture their semiconductors.Īs a result, they can’t benefit from the $52 billion the federal government has earmarked for companies to build new fabrication plants in the U.S. Although both companies are based in the U.S. Unfortunately, neither AMD nor NVIDIA is expected to benefit from that law, which is aimed at driving domestic semiconductor production. In the U.S., one trend that’s sure to drive growth in the chip industry is the CHIPS and Science Act. Some chipmakers are likely to benefit from this law more than others. It’s aimed at bolstering the semiconductor supply chain and promoting R&D on advanced technologies in the U.S. However, the recently signed CHIPS and Science Act should give the chipmaking industry a boost.
Meanwhile, the semiconductor industry has had a difficult time since the early days of the pandemic as shortages squeezed supplies of everything from cars to smartphones and tablets. A closer look reveals why AMD deserves a bullish view, while a bearish view may be more accurate for NVDA.Īdvanced Micro Devices and NVIDIA have both benefited from cryptocurrency mining and other trends that drove increases in semiconductor sales. In this piece, we used TipRanks’ Comparison Tool to evaluate two popular semiconductor stocks - Advanced Micro Devices ( AMD) and NVIDIA ( NVDA). Chipmaker stocks have certainly had their ups and downs over the years, but this year, they’ve been heading mostly down, creating the potential for investors to pick and choose the cream of the crop at a discount.
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