Nvidia (NVDA) - Get Report and Advanced Micro Devices (AMD) - Get Report saw some positive commentary from an analyst, who is growing more optimistic on the two chip companies' sales of high-end chips.
Nvidia shares rose 0.78% to $211.82 Friday, while AMD fell 0.81% to $39.20 a share.
"Within HPC [high-performance computing], AMD appears to be gaining momentum, Nvidia appears to be maintaining momentum, and Intel could be losing momentum," wrote KeyBanc capital Markets analyst Weston Twigg in a Thursday evening note. Twigg came to this after attending the 2019 Supercomputing Conference in Denver, Colorodo.
For AMD, industry experts who spoke with Twiggs said that AMD's newly released Rome CPU and its data center GPU's were positioned to gain considerable interest from customers. Still, "Nvidia remains the dominant GPU provider," Twigg said, as its CUDA platform and software have a high degree of "stickiness."
For Intel, experts at the conference suggested "the company hasn't provided enough recent innovation and that its products just aren't as competitive as they need to be to justify high prices."
In addition to AMD's ROME CPU, its relatively new Ryzen, Radeon and EPYC chips have been driving solid financial results of late. "Our first full quarter of 7 nanometer Ryzen, Radeon and EPYC processor sales drove our highest quarterly revenue since 2005, our highest quarterly gross margin since 2012 and a significant increase in net income year-over-year," said AMD president and CEO in the company's latest earnings release.
Twiggs noted that AMD and Nvidia both trade at premium valuations to their peers, with AMD at 36 times expected 2020 earnings per share and Nvidia at 38 times earnings.
AMD shares are up 116% year-to-date, while Nvidia is up 55%. Intel is up 21% in 2019.