The Trust Layer for Market Analysts

The video analyzes AMD and NVDA, comparing revenue growth, return on invested capital, and operating profit margin over the past decade. In 2015, both companies started with $5 billion in annual sales, NVDA's revenue grew nearly 30x, reaching $149 billion, while AMD's grew approximately 6x, reaching $29.6 billion. NVDA's CAGR over the time is 44.2%, while AMD is 23.5%. NVDA's business is more focused on data centers, whereas AMD’s business is split between data centers and personal computers. NVDA's return on invested capital is over 141%, while AMD's is less than 5%. The video expects AMD operating profit margin will approach 20% over the next few years, while NVDA’s operating profit margin will decline closer to 50%. According to the proprietary discounted cash flow model for AMD has the business worth 136.05$ a share, compared to the current market price of 164.71, AMD stock looks slightly overvalued. NVDA's intrinsic value is 156.38$, compared to the current market price of 174.57, the NVDA stock looks overvalued.