⚔️ NVIDIA vs AMD: Which AI Titan Deserves Your Capital Right Now?

Inside The Trade: Battle of the AI Chip-makers

Hey trader,

The AI trade is evolving. What was once a hype cycle is now a capital flow cycle. The big players are building, deploying, and allocating serious budget to infrastructure. At the center of it all? NVIDIA and AMD.

This week, we’re skipping the fluff. You’re getting the macro view, the key levels, and the trade setups with precision. Portfolio-ready and technically sound. Let’s get you lined up.

“Know what you own, and know why you own it.”
— Peter Lynch

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Macro View: Tailwind Confirmed

The US Dollar Index (DXY) has slipped below 100.40 as the Fed prepares for potential rate cuts in Q3. That’s a green light for globally exposed tech, and chipmakers stand to benefit more than most. Cloud providers are scaling their AI compute spend, and the order books are filling up. These aren’t forecasts anymore they’re signed contracts and chip demand surging in real time.

This backdrop favors companies with competitive advantages in AI hardware, broad institutional adoption, and pricing power. NVIDIA and AMD both qualify, but how you trade them matters.

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AMD: The Ascent of the Underdog

Why it’s a pick:
AMD is finally stepping out from under NVIDIA’s shadow with the MI300X AI accelerator. In the last quarter, AMD’s data center revenue jumped 80 percent year over year, and their chips are now live in Microsoft Azure and Oracle Cloud. The company is also a key supplier to Amazon Web Services.

AMD benefits from being the cost-effective alternative. While NVIDIA has CUDA lock-in, AMD’s architecture plays well with open-source frameworks, making it attractive to enterprises looking to diversify.

Balance sheet check:

• Debt-to-equity: 0.04

• Forward P/E: 34

• Gross margin: 47 percent

• Return on equity: 12 percent

• Healthy cash position, minimal dilution risk

Fundamentally, you like this stock because it's still early in its AI adoption curve. Institutions are beginning to scale up their AMD allocations as MI300X proves itself in real-world performance.

Trade plan: