AMD offers alpha over crowded Nvidia
The guest argued that Advanced Micro Devices (AMD) represents a stronger source of alpha than Nvidia (NVDA) because Nvidia has become too widely held and commonplace.
The argument
While the AI build-out continues to drive chip demand, the guest noted that AMD's stock has performed exceptionally well relative to NVDA as investors search for less crowded trades.
The thesis, stress-tested
✓ What validates it
- ✓AMD market share gains in AI chip deployments
- ✓AMD earnings growth outperforming NVDA on a percentage basis
▸ Risks discussed
- ▸Increased regulation of data center power and electricity usage
- ▸Broad market correction in tech stocks
Hear it yourself
"It's a commercial play and other commodities as well. So, no, I like my long commodity, long, high yielding fiat, barbell. I'm gonna write about that this week now that things have settled down a little bit after our move. I'm sitting in my new office, by the way, so it's all good. I love it. I love it. We're both in our Florida bureaus today. Yeah. Chris, in the institutional risk analyst this week, you did write about, Kevin Warsh, not the rep, but in the IRA, Kevin Warsh, and how he could shrink the Fed's balance sheet while credibly cutting short term rates."
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