Profitability Analysis on Nvidia Corporation vs. Advanced Micro Devices Inc.

Alyssa Giordano

Co-Presenters: Individual Presentation

College: College of Business and Public Management

Major: BS.FINANCE

Faculty Research Mentor: Huaibing Yu

Abstract:

Title: Profitability Analysis on Nvidia Corporation vs. Advanced Micro Devices Inc.
Author: Alyssa Giordano, Department of Finance, Kean University
Abstract:
The research project analyzes two major companies in the semiconductor industry, Nvidia and Advanced Micro Devices Inc. (AMD) which are leading and competing at a very quick pace in the expanding markets for graphing processing units (GPUs) and artificial intelligence (AI) accelerators. Although both companies operate on similar product classifications, their financial performances differ dramatically because of their contrast in market positioning and strategy. By utilizing financial statements that are publicly available, this analysis will assess metrics that are key for profitability such as return on investment (ROI), return on equity (ROE), and various profit margins. This analysis will also focus on qualitative factors such as research and development investment, competitive strategies, and any experience in AI markets with high growth. Data shows NVIDIA is largely leading in with AI-related GPUs which account for drastically higher margins and growth compared to AMD. With examined context in the industry, this project provides a detailed analysis of how strategy and positioning can impact profitability in the semiconductor sector.