Is Advanced Micro Devices (AMD) Stock a Good Buy After The Recent Jump?
12:55 pm Tuesday, July 13th, 2021
When it comes to the chip manufacturing sector, there are only a handful of options in the market and one of those is Nvidia. Over the course of the past half a decade or so, Nvidia has been involved in a bruising battle with its chip manufacturing rival Advanced Micro Devices (NASDAQ:AMD).
Although the AMD stock performed better over the past five years, the Nvidia stock is actually ahead in the past year and has managed to clock gains of as much as 92%. The Nvidia stock has been in the middle of a strong rally in recent times and through the course of May and June, it managed to clock gains of 32%. Now, many experts believe that the Nvidia stock may be on track to hit $1000 a share in the near future.
The company’s performance in the most recent quarter is an indication of the strength in the business at this point in time. Nvidia’s revenues came in at $5.66 billion, which reflected a year-on-year rise of a staggering 84%.
In addition to that, the operating income doubled year on year to hit $1.96 billion, and most importantly, there were no clear signs of weaknesses in the company’s business. Some of the other metrics also make for interesting reading. Nvidia managed to generate free cash flow of as much as $1.56 billion in the first quarter and that reflected a rise of 106.5% from the previous. Hence, it is clear to see that this is a stock that could be worth tracking.
