NVIDIA Or Qualcomm: Which Chip Stock Is The Better Buy?

in #money4 years ago

Investing in chip stocks has been a profitable move during the current global downturn. Semiconductor companies saw demand for their products surge, boosted by the gaming industry and cloud-computing as more companies transitioned to having their employees work from home.

Nevertheless, many chipmakers are still facing an uncertain environment as US-China tensions escalate and the demand spike triggered by the sudden work-from-home trend likely subsides as the economy reopens and workers return to their corporate offices.

Most analysts expect the semiconductor business to improve in 2020, when the sector is anticipated to get a significant boost from the expansion of cloud infrastructure spending.

However, there are two chip stocks—Qualcomm (NASDAQ:QCOM) and NVIDIA (NASDAQ:NVDA)—that are in a different league. Each has balance sheet strength, robust cash flow and diverse product categories, which are all expected to remain strong in the current environment. Here's our view on which stock is a better buy in the current environment.

NVIDIA: GAMING AND DATA-CENTER STRENGTH
A strong and impressive rally in NVIDIA shares during the current global health crisis clearly separates this chip stock from the crowd. NVIDIA's shares surged more than 90% this year, hugely outperforming the Philadelphia Semiconductor Index, which is up about 20% since the start of 2020.

NVIDIA One-Year Chart.

(Image not shown due to low ratings)



(Image not shown due to low ratings)






Images were hidden due to low ratings.
Sort:  

Warning! This user is on our black list, likely as a known plagiarist, spammer or ID thief. Please be cautious with this post!
If you believe this is an error, please chat with us in the #appeals channel in our discord.