$(AMD)$ Rockets On $(Facebook)$ Deal. AMD partners with Meta, seeks to 'advance semiconductor ecosystem in United States,' CEO Lisa Su says. AMD offers impressive growth at a much cheaper valuation than Nvidia.
AMD and Nvidia are high-growth companies, but there's a massive difference between the valuation of the chipmakers. While AMD trades at 9.3 times sales, $(Nvidia)$ is quite expensive with a price-to-sales ratio of 24. The price-to-earnings ratio also tells a similar story, with AMD's multiple of 36 much lower than Nvidia's 76.
AMD'S growth is expected to match that of Nvidia's in the coming years. Analysts expect AMD earnings to clock a compound annual growth rate of 32% for the next five years, which makes buying AMD over Nvidia a No-Brainer given the stark difference in the valuation of these two tech stocks.