Buy This, Not That: What to Do After Nvidia’s Historic Drop

|January 29, 2025
Nvidia logo on the office building

When a company loses $589 billion in market value in a single day, you might think it’s time to run…

But sometimes, the biggest drops create the best opportunities.

That’s exactly what happened with Nvidia this week.

Let me show you why this semiconductor leader is still a BUY – and why its closest competitor isn’t quite ready for primetime.

The numbers tell the whole story…

Tune in for your weekly Buy This, Not That.

Click on the thumbnail to dive in.

Note: Keep the tickers coming! In future videos, I’ll rate them as Buys or Not. The email is mailbag@manwardpress.com.

TRANSCRIPT

Hey, everybody. Shah Gilani here with your weekly BTNT, as in Buy This, Not That.

How can I not address the semiconductor space, including the most widely held stock on the planet, Nvidia (NVDA), especially with what happened on Monday, and one of its stalwart competitors who’s not doing nearly as well, Advanced Micro Devices (AMD)?

Let’s compare the two… and I’ll keep it simple.

Nvidia is a BUY. AMD is NOT a buy.

Unless you like bottom fishing, AMD could be a buy for you.

But here’s why Nvidia is the buy. Monday’s sell-off, as ugly as it was, wiped out $589 billion from Nvidia’s market cap, yet the stock saw a nice rebound the day after.

So Nvidia investors, this is just an FYI… Some of these great companies, when they go down, are buy-the-dip opportunities.

Nvidia’s $2.9 trillion market cap as of today is recouping a good bit. It was down from Friday to Monday’s close a whopping 17%. AMD, from Friday to Monday’s ugly close, was down only 6.4%. But the bounce back the following day, Tuesday, saw AMD fall another 0.73%.

Nvidia, on the other hand, bounced – we will round it up – 9%.

That’s why Nvidia is a BUY and AMD is NOT. AMD, on Monday, saw a new 52-week low. Nvidia has been striding ahead. So yes, it had an ugly, historical sell-off. No company has ever lost more market cap, more valuation in a day than Nvidia lost on Monday, but it made a bounce back. Why? Because people want to own Nvidia.

And here are a couple of reasons they want to own it. While AMD’s profit margin sounds pretty good, it’s not that great.

Let’s get down to the exact numbers: AMD: 7.52% Nvidia: 55%.

That’s why you should buy Nvidia and not AMD.

Like I said, AMD just made a new 52-week low on Monday. AMD’s quarterly revenue growth year over year is very attractive at 17.6%. Nvidia’s quarterly revenue growth year over year: 122%.

In the past 52 weeks, AMD stock is down 28.61%. Nvidia, including the downturn and the bounce, is up 127% in the past 52 weeks.

Listen, if I need to make it any clearer – and I really shouldn’t have to – but I will, let’s look at this chart. Let’s compare, shall we? Here’s AMD.

Advanced Micro Devices

That’s what I call bottom fishing. Now there’s nothing wrong with AMD. And I think over time, AMD is going to have a significant comeback. But if you have to choose between one or the other, I would buy Nvidia and not AMD because this is what Nvidia’s chart looks like.

Nvidia

Kind of like the opposite of AMD.

Yes, people. This is an ugly dip. And yes, I bought the dip.

Nvidia is a BUY. AMD, not so much.

That’s it for today. Be safe out there because I don’t know if all this concern over Chinese AI that costs one-billionth of what the big American tech companies are spending for AI is going to continue to disrupt the entire AI space, especially the mega-cap tech stocks in the U.S. You see with Nvidia, this company has been growing everything beautifully.

A sell-off, more than a little bit, was a buying opportunity. Is it going to continue to go up? We’ll find out when earnings come out, but I think it will.

That’s it for today. Be safe out there.

Shah Gilani
Shah Gilani

Shah Gilani is the Chief Investment Strategist of Manward Press. Shah is a sought-after market commentator… a former hedge fund manager… and a veteran of the Chicago Board of Options Exchange. He ran the futures and options division at the largest retail bank in Britain… and called the implosion of U.S. financial markets (AND the mega bull run that followed). Now at the helm of Manward, Shah is focused tightly on one goal: To do his part to make subscribers wealthier, happier and more free.


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