The cryptocurrency crash in these recent months has seen hardware prices plummet. And with the fall in hardware prices, hardware manufacturers including giants AMD and Nvidia have been hit hard. But between the two, apparently Nvidia has suffered more as it was beaten by AMD as 2018’s top performing stock. AMD ended 2018 as the top performing stock on the S&P 500. The company’s stocks were up 79.6%.
Meanwhile, between the two companies, Nvidia seems to have suffered more in this last quarter. The cryptocurrency crash saw Nvidia’s stock drop a whopping 54% in the fourth quarter of 2018. And this made the company the worst performer on the S&P 500 list for that quarter.
Despite this triumph over its GPU rivals, 2018 wasn’t the smoothest of years for AMD. The graphics-chip manufacturer itself saw a 40.2% fall in stock value during the fourth quarter. But unlike Nvidia, whose business is mostly tied around GPUs, AMD also has a CPU division. And thanks mostly to Ryzen (AMD’s CPUs for consumers) and EPYC (AMD’s CPUs for servers), this division has seen a sort of a resurgence in recent years. This has helped the company buoy its stock value.
A flat year for Intel
And there also seems to be another reason why AMD’s CPU division has been getting a boost. Another one of AMD’s rival is Intel, a much (much) bigger manufacturer of CPUs. But as of late, the company has reportedly suffered a lot due to issues regarding the manufacturing of its 10nm node. Furthermore, this has resulted in a shortage of its 14nm production.
To add to all this, the company has suffered from a lack of solid leadership. Intel reportedly spent the second half of 2018, searching for a new long term CEO. But despite all this, Intel also managed to buoy its stock value, thanks mostly to the growth of its data centers. This is expected to change due to the ongoing tariff battle between the US and China. But for now the company seems to be doing okay. Intel has also profited from not being involved in the dedicated graphics card market. This is where both AMD and Nvidia have taken a hit. However, Intel is expected to enter this game by 2020, with the release of its own dedicated graphics cards, the Xe line.
The Future for AMD
AMD has always maintained an image of a company taking on two giants. On the one hand, it’s GPU competitor, Nvidia, has a market cap of $81.44 billion compared to its own $18.45. And its CPU competitor, Intel, is at a whole different league, with a market cap of $219.55 billion. AMD has so far profited from this image but the company isn’t as well situated as Intel or Nvidia to handle market fluctuations. Furthermore, unlike its competitors, AMD has failed to expand successfully in areas such as AI, automotive and enterprise graphics. So there’s still a lot of work to do for AMD.
The company however, just recently got into the Nasdaq-100 index.