AMD's Record Revenue Can't Boost Stock as Nvidia Looks More Attractive

Advanced Micro Devices (AMD) has delivered its best quarter in history, but the stock price hasn't followed suit. The company's revenue reached $11.5 billion in Q2, a 50% increase year-over-year, with data center revenue more than doubling.

The guidance for the current quarter is above expectations, but this hasn't been enough to boost investor confidence. In fact, the stock has sold off despite these positive results.

Bing-Jhen Hong's analysis suggests that AMD may not be as attractive as its competitor Nvidia (NVDA). NVDA grew faster than AMD last quarter, converting 60% of its revenue into cash, and trades at a 30% discount to AMD's forward multiple.